VPPS are crucial for establishing a new power system.
In 2024, Zhejiang Province introduced policies to promote VPP participation in ancillary service markets through incentives and market mechanisms. As part of this initiative, Hitachi Energy has offered consultancy to support Zhejiang Energy Group in launching its first VPP project. The project integrates various resources to provide auxiliary grid services, improving supply-demand balance and regulatory capabilities.
Hitachi Energy’s contributions include tailored algorithm development for trading strategies and settlement processes, along with essential hardware support. These enhancements facilitate efficient resource utilization in Zhejiang, a region with significant industrial activity where electricity consumption reached over 678 billion kilowatt hours in 2024, reflecting a 9.5% annual increase.
The VPP platform delivers critical services such as peak load adjustment and frequency response through smart interactions among power supply networks, loads, and storage systems. Currently, it connects over 200 user-side resources in the province, aggregating diverse energy forms, including storage capacities and adjustable loads.
Advanced digital control technologies enable real-time responses, boosting dispatch efficiency and ensuring stable grid operations. The platform also mitigates fluctuations in renewable energy generation, enhancing the efficiency of renewable resource use across Zhejiang Province.
This partnership supports Zhejiang’s efforts to meet growing energy demands sustainably while maintaining grid stability. By leveraging Hitachi Energy’s expertise, Zhejiang Energy Group aims to strengthen its VPP operations, contributing to the province’s energy goals and efficient market participation.
