China's virtual power plants pave way for green energy transition

China is developing virtual power plants to achieve energy savings and promote the transition to greener energy. In a smart control platform for virtual power plants launched in August last year in Yantai, a large screen displays real-time monitoring of resource access, electricity load, and power trading data. The 242,000-kilowatt capacity adjustable load resource pool, built by the Dongfang Electronics Co Ltd, has achieved interconnection with both State Grid Shandong Electric Power Company and the State Grid's Yantai branch, said Dong Wenjie, head of the comprehensive energy business department of Dongfang Electronics Co Ltd. As resources from various regions continue to be integrated, the orderly establishment of a 500,000-kilowatt adjustable load resource pool will be realized, Dong said. According to a document released by the National Development and Reform Commission and the National Energy Administration in March, it is necessary to define market access, clearing, and settlement standards for distributed new energy sources, virtual power plants, and other new entities and formats. Despite the lack of fully developed business models, government support and ongoing exploration indicate a promising future for virtual power plants, which will encourage greater participation from businesses and residents, thus aiding the transition to green energy, said Dong.