PJM plan for distributed energy aggregations would block virtual power plants: Tesla

Source: Ethan Howland | · UTILITY DIVE · | September 25, 2023

Tesla urged federal regulators to approve measures so residential aggregations in VPPs in PJM can be “achieved at scale and provide transformative reliability value and reduce consumer energy costs.”

Source: The PJM Interconnection’s revised plan for integrating distributed energy resources into its markets contains measures that effectively block virtual power plants, Tesla said Sept. 22, 2023, in a filing with the Federal Energy Regulatory Commission. ArtistGNDphotography via Getty Images

The PJM Interconnection’s revised plan for integrating distributed energy resources into its markets contains measures that effectively block virtual power plants, known as VPPs, Tesla said Friday in a filing with the Federal Energy Regulatory Commission.

Tesla offered pathways it said would eliminate the barriers so residential aggregations in VPPs in PJM’s wholesale market “can be achieved at scale and provide transformative reliability value and reduce consumer energy costs.”

Through its Order 2222 issued three years ago, FERC directed regional transmission organizations and independent system operators to ensure DER aggregations can participate in wholesale markets. The aggregations could include resources such as rooftop solar, energy storage and electric vehicle chargers.

Virtual power plants are groups of distributed resources such as rooftop solar and batteries that can act as a single resource.

Tesla has set up virtual power plants that provide services to wholesale markets in South Australia and in a pilot project in Texas. The VPPs combine Tesla customers’ solar and co-located Tesla 5-kW, 2.5-hour Powerwall batteries, which are deployed mainly for residential customers, according to the company.