Ford, GM, Google partner to promote use of ‘virtual power plants’

According to news agency Reuters, some companies including Ford, Google, GM and solar power producers will work together to establish standards to increase the use of virtual power plants (VPPs), systems meant to reduce the load on the electricity grid.

The companies said Energy Transitions will host the non-profit RMI initiative, the Virtual Power Plant Partnership (VP3), which also aims to shape policy to promote the use of the system.

Virtual power plants pool together thousands of decentralized energy resources, such as electric vehicles or electric heaters, controlled by smart thermostats.

With permission from customers, they use advanced software to react to power shortages, such as switching the batteries of thousands of homes, such as those in EVs, from charge to discharge mode or devices that use electricity, Such as prompting water heaters to back off their consumption, according to a Reuters report.

In the United States, VPP is positioned for explosive growth, where the 2021 Inflation Reduction Act has added or increased tax incentives for electric cars, electric heaters, solar panels, other equipment whose production and consumption Can be coordinated for smooth grid load.

RMI estimates that by 2030, VPPs could reduce US peak demand by 60 GW, the average consumption of 50 million homes, and more than 200 GW by 2050.

Mark Dyson, Managing Director of the Carbon Free Electricity Program at RMI, said: “Virtual power plants will enable grid planners and grid operators to (better manage) the growing electricity demand from vehicles, buildings and industry, and ensure that the grid can meet existing Can remain reliable despite the challenges of extreme weather and aging physical infrastructure.”

Speaking to Reuters, Rob Threlkeld, director of global energy strategy at General Motors, said the VP3 “will be able to demonstrate that EVs can become a reliable asset for retail utility and/or retail transmission operators” and “can be an asset is” a homeowner and a fleet of customers.”

VPP has already improved grid reliability in countries such as Germany and Australia, and in some US states.

During an extreme heat wave last August, wholesale market operator California Independent System Operator avoided blackouts by calling on all available resources, including VPP, to send power. Reuters reported that Google Nest smart thermostats contributed to reducing the load.

“There is an increasingly urgent need to ensure that the grid remains resilient, that we avoid blackouts and that we are able to make the grid clean and green,” said Parag Chokshi, director of Nest Renew at Google.

Other founding members of VP3 include Ford, SunPower and Sunrun.

(With Reuters inputs)

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