Virtual Power Plants

Virtual Power Plants

virtual power plant (VPP) sometimes referred to as a flexibility aggregator is a cloud-based energy system that aggregates the capacities of different distributed energy resources into a single combined resource in order to complement power generation, as well as trading or selling power on the electricity market. 

Power generation sources can be grouped by dispatchable and non-dispatchable, with variable or set output. Examples can include CHPs (combined heat and power), wind power plants, photovoltaics (PV), natural gas, hydroelectric, biogas, biomass, backup generators, and battery storage. 

These devices can be combined in various ways either locally or virtually, for example, a battery storage device could augment the ramp-up time of a CHP in order to achieve a faster response time for the CHP. In addition, the long running time of the CHP will be able to maintain output for a more extended period than a standalone battery. 

The main goal of a virtual power plant is to create balance in the grid. combining multiple smaller sources of energy together to provide additional energy when demand is high, and reduce production when demand is low. There are two main services that are generally provided by virtual power plants: flexibility, and ancillary services


The amount of electricity available from solar and wind fluctuates throughout the day. Weather plays the most important role here, cloud cover or seasonal changes affect the amount of solar radiation, and the amount of wind affects wind production. The role of flexibility is to fill in the gap created by changing conditions, when the power is low, dispatchable electricity sources can be activated to cover the shortfall. With regard to flexibility, this happens in the intraday market in response to changing conditions. Depending on the severity and level of unpredictability of the change, a faster response must occur. 

Ancillary Services

Ancillary services are a specific regulated market designed to provide grid stability and security. These services include frequency control and reactive power control. Frequency is particularly important - the grid in Europe is 50 Hertz. In order to maintain grid services that frequency must not deviate more than 0.2 Hertz. Events such as strong wind, power plant outages, or sudden increases in demand, make it necessary to consistently stabilize the power grid. 

In Europe balancing energy occurs via the market. There is an auction procedure, performed by the grid operator to ensure a sufficient supply of reserve capacity throughout the day. There are 3 main ancillary services categories, FCR, aFRR, and mFRR. 

Become part of the Nano Energies Virtual Power plant and maximize the revenue of your device.

Nano Energies runs the most advanced virtual power plant in central and Eastern Europe. By joining our virtual power plant, you will be able to leverage our many years of experience, advanced algorithmic trading, and forecasting. With our 24-hour dispatching, it will be possible for you to reduce costs while increasing your revenue.

Contact us today

Contact us today