EPCG: The concept of a virtual power plant is being developed as the next step in the energy transition

As the next step in the energy transition, the Electric Power Company (EPCG) is developing the concept of a virtual power plant (VPP), which should enable more efficient integration of renewable energy sources and management of the flexibility of the power system, it was announced at the EPCG NET energy symposium in Budva.

During the presentation Virtual Power Plant: a platform for managing flexibility, the Technical Director of EPCG, Ljubiša Đurković, recalled that the main goals of the energy transition are the decarbonization of the energy sector, increasing the share of energy from renewable sources, improving energy efficiency, reducing emissions and harmonizing with the climate policy of the European Union (EU), while achieving climate neutrality by 2050.

Speaking about the results so far, Đurković pointed out that in November 2022, EPCG began developing the prosumer concept through the Solari 3000+, Solari 500+ and Solari 5000+ projects.

"Solari projects are based on the 'produce where you consume' model, which has proven to be very successful, and the EU, with its new directive on the energy performance of buildings, has confirmed the justification for the application of such a model. The roofs of buildings have become capacities for electricity production, while consumers have also become energy producers and prosumers," said Đurković.

According to him, thanks to the implementation of these projects, Montenegro today has more than ten thousand prosumers with a total installed capacity of about 100 megawatts (MW), which annually produce approximately 135 gigawatt hours (GWh) of electricity.

He stated, as announced by EPCG, that the benefits of the projects are multiple - from more stable and decentralized energy sources for the power system to reducing electricity costs for households after the payback period of photovoltaic systems, which lasts on average six to seven years.

Đurković pointed out that through the Solari projects, EPCG has gained significant experience in managing processes related to prosumers, and that expert teams have been formed that are now participating in the construction of large solar power plants.

According to him, by the end of next year, solar and wind power plants in Montenegro are expected to produce around 500 GWh of electricity annually.

Speaking about the next phase of the energy transition, Đurković emphasized that the key issue is how to store energy produced from renewable sources and how to efficiently integrate it into the distribution and transmission network.

"One of the trends that is increasingly popular in European Union countries is the development of virtual power plants," said Đurković.

A virtual power plant does not produce energy at a single location, but rather manages solar power plants, battery energy storage systems, electric vehicle chargers, flexible consumption, and other distributed energy resources in a unified manner.

Engineer at the EPCG RES Directorate, Vuk Kasalica, presented the concept of a flexibility management platform, emphasizing that the goal is to move from the electricity production process itself to the management of flexible energy resources.

As he explained, distribution substations and transformer stations are no longer just places where electricity is consumed, but are becoming active hubs where prosumers, battery systems, and chargers for electric vehicles appear.

This, he said, brings new challenges for the distribution network, such as the return flow of electricity to medium voltage, problems with voltage conditions, and additional loads due to the development of electromobility.

"We do not view these challenges as an obstacle, but as an opportunity to create new resources of flexibility and new value for the power system," said Kasalica.

According to him, the physical layer of the future platform will consist of prosumers, battery systems, chargers for electric vehicles and other controllable consumers, while stable communication and constant monitoring of the network status are key to their efficient connection.

Kasalica explained that the application layer is conceived as a system of multiple connected subsystems, including DERMS, responsible for managing network constraints and system security, and a virtual power plant as an aggregator of all resources within a specific transformer.

A project development map was also presented, which envisages five phases.

The first phase includes the pilot implementation of battery systems and chargers for electric vehicles, with the aim of testing their contribution to the operation of the grid in real conditions.

The second phase envisages optimization and advanced resource management through system connectivity, defining management rules, and moving from managing individual devices to managing the local network.

The third phase refers to the expansion of the project to a larger number of substations with standardization of equipment, communication and management methods.

In the fourth phase, it is planned to form a virtual power plant by unifying batteries, prosumers, electric vehicle chargers and other resources into a central platform.

The fifth phase involves market integration and monetization of flexibility through peak load reduction, system balancing, provision of ancillary services, and development of new business models in accordance with regulations.

Kasalica said that the project's success will be measured by technical, operational, economic and social effects, including improved network performance, greater digitalization and support for Montenegro's energy transition.

"Prosumers, batteries and chargers for electric vehicles already have value, but their full systemic value only arises when they are connected, measured and managed in a coordinated manner," said Kasalica.