The Guangdong Provincial Energy Bureau and the Southern Regulatory Bureau of the National Energy Administration have recently issued the Implementation Plan for Virtual Power Plant Participation in Guangdong Electricity Market Transactions (hereinafter referred to as the "Plan").
From GUANGMING.COM
The Guangdong Provincial Energy Bureau and the Southern Regulatory Bureau of the National Energy Administration have recently issued the Implementation Plan for Virtual Power Plant Participation in Guangdong Electricity Market Transactions (hereinafter referred to as the "Plan"). This initiative allows virtual power plant (VPP) operators and aggregated resources that meet market entry requirements to participate in Guangdong's electricity market transactions.
A virtual power plant consolidates dispersed energy resources, such as charging stations, air conditioning systems, energy storage units, and distributed renewable energy, into a unified operational entity. Using advanced information and communication technologies, VPPs act as agents to optimize power management.How Will VPPs Participate?The Plan specifies two main pathways:Load-based Virtual Power Plants. These aggregate adjustable user-side resources (including energy storage) and register in the market as power users.Generation-based Virtual Power Plants: These consolidate distributed photovoltaic systems, decentralized wind power, and independent energy storage connected to 380V/220V voltage levels. These resources register as individual generation projects.
Load-based VPPs respond to grid demands by adjusting user-side power loads, while generation-based VPPs supply electricity and auxiliary services to the grid by integrating distributed generation resources."Previously, virtual power plants in Guangdong could only participate in demand response initiatives through invitation-based mechanisms, which limited their commercial potential," said Luo Jinqing, Deputy Manager of the Development and Research Department at the Guangdong Power Exchange Center.
Since 2021, Guangdong has conducted 86 demand response transactions, distributing RMB 1.137 billion in compensation. With the release of the Plan, VPPs can now fully participate in electricity market transactions by submitting energy bids. Additionally, they can offer value-added services such as energy efficiency optimization, enhancing both commercial viability and grid flexibility.The new approach fosters a win-win model, supporting sustainable development while meeting the growing demand for green energy.