What are the different types of VPPs?

What makes one VPP different to another, are the people who are operating it; in our case it will either be a network operator or an energy retailer.

When a network is operating a VPP, their main priority is to help stabilise the grid during times when the grid is under strain. This means your battery could be used:

  • To discharge electricity to the grid if too many people are running their air conditioners
  • To charge from the grid to soak up excess solar energy being fed into the grid within your community; or
  • Your battery’s charge could be held steady in preparation for high demand.

When an energy retailer is operating a VPP, your battery will be exposed to the wholesale electricity market and will earn you money by trading your energy. As the price of electricity fluctuates throughout the day, your battery may:

  • Discharge your energy when prices are high (earning you the price/kWh at that time); or
  • Charge your battery when prices are low (allowing you to consume or trade cheaper-than average electricity).