The Virtual Power Plant-A Review of Business Models

Abstract

The aim of the article is to present a critical comparison of different business models of Virtual Power Plant and pointing out both the common and the unique features for each model. Therefore, the American, German, Finnish, Danish and Australian VPP's business models are described in the article. The VPP is an IT structure which integrates different types of distributed energy sources, flexible consumers and energy storage with each other and with other market segments in real time through a smart grid. The VPP gives positive effects on electricity grid like ensuring energy security, improving grid stability and reliability, optimization of energy resources use, lowering the load-demand response, regulation of frequency, using operational reserves, management of peak demand. The business model is perceived as a method of increasing and exploitation of company's resources for preparing new products or services for customers in order to obtain added value (expanding the competition advantage or increasing profitability). A potential VPP's business model in Polish conditions was proposed in case of two different types of customers.