How Virtual Power Plants will change the future of electricity?

Virtual Power Plants (VPP) have been the talk of the town and are gaining immense popularity. These are cloud-based distributed power plants that aggregate the resources of various distributed power generating units to enhance energy generation and even trade units on the electricity market.

What are Virtual Power Plants?

Virtual Power Plants (VPP’s) are a network of decentralized, medium scale power generating units such as solar parks, wind farms, and storage systems in a cloud-based setting. These interconnected units are transmitted through the central control room of the Virtual Power Plant but remain independent in their ownership and operation.

The primary objective of a Virtual Power Plant is to forecast, monitor, optimize, and dispatch energy generation and consumption while relieving the load on the grid. This is achieved through intelligent distribution of the power generated by individual units during periods of peak load.

 

Decentralization and Virtual Power Plants (VPP)

Virtual Power Plants seem to have a promising future by reaping cost-savings and environmental benefits for the grid, consumers, and utility companies. VPP within the distributed system offers a way to forgo capital intensive investments, create grid reliability and operational optimization.

Distributed energy generation at such a scale in Pakistan would need both technological and institutional change that maximizes the use of renewables- especially solar and wind. The good news is that decentralized assets is the now in trend worldwide and VPP’s makes it possible for such smaller assets to get the same regulatory treatment as power plants.

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‘The King of Electricity’: Solar Outshines Other Power Sources

Renewables accounting for 80 percent of growth in global electricity generation under current conditions. The combined share of solar photovoltaic (PV) and wind in global generation will rise to almost 30 percent in 2030 from 8 percent in 2019, it said, with solar PV capacity growing by an average 12 percent a year. 

Maturing technology and government support mechanisms have cut financing costs for major solar PV projects, helping to bring down output costs overall. Solar PV is now cheaper than new coal- or gas-fired power plants in most countries.

Solar output is expected to lead a surge in renewable power supply in the next 10 years as International Energy Agency says solar generators are cheaper than new coal- or gas-fired power plants in most countries. A more ambitious scenario, including for instance the adoption of net-zero emissions targets by 2050, would see PV electricity generation perform more strongly still.

In the annual World Energy Outlook published on Tuesday, the IEA said in its central scenario – which reflects policy intentions and targets – renewables are expected to overtake coal as the primary means of producing electricity by 2025.

IEA Executive Director Fatih Birol said, “I see solar becoming the new king of the world’s electricity markets. Based on today’s policy settings, it is on track to set new records for deployment every year after 2022.”

Power generation from renewables is the only significant source of energy that continued to grow in 2020, the Paris-based agency added.

Integrating new wind and solar power will depend on adequate investment in all parts of the system, including distribution networks. However, revenue shortfalls – potentially arising from lower-than-expected demand, non-payment of bills, or the deteriorating finances of utilities in developing economies – could make power grids a weak link.

Despite the increase in solar and wind power, carbon emissions are projected to pick up in 2021 after a 2.4 gigatonne (Gt) drop in 2020, and to exceed 2019 levels in 2027 before growing to 36 Gt in 2030, it added.

The IEA said gaps remain in many cases between long-term ambitions and specific near-term plans to curb emissions.

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The Rise in Renewable Energy

Every year, there is a sharp increase in the demand of Renewable sources. According to BP Statistical Review of World Energy 2020, last year, renewable energy companies accounted for 41 percent of the rise in energy demand, the largest of any energy source. 

According to estimates from Reuters columnist John Kemp, oil was only 21 percent of the rise in total global energy demand  and natural gas represented 36 percent of the increase in energy demand,. 

Primary energy growth in 2019 was driven by renewables, followed by natural gas, according to BP. These together contributed to over three-quarters of the net increase.

BP said in its statistical review published earlier this year:

“The share of both renewables and natural gas in primary energy increased to record highs. Meanwhile, coal consumption declined, with its share in the energy mix falling to its lowest level since 2003”.

Although, renewables and EVs will encroach on the territory, Natural gas, coal, and oil will continue to be major sources of energy in the coming years. The growth in renewables will be accelerated by declining costs and policies around the world to encourage a shift ‎to lower-carbon energy sources, BP said. 

Going forward, cost competitiveness will be key to how much oil, gas, and coal that renewables can displace. Renewable power is increasingly cheaper than any new electricity capacity based on fossil fuels, the International Renewable Energy Agency (IRENA) said in June. 

The trend in renewables dominating power capacity additions has already started. With a record 118 gigawatts (GW), photovoltaics (PV) accounted for 45 percent of new-build capacity and was the most popular technology deployed in a third of nations, BNEF said.

According to estimates from research company BloombergNEF (BNEF), solar and wind power combined accounted for 67 percent of all new power capacity the world added last year, while the share of fossil fuels in new capacity declined to 25 percent. 

As per BP’s Energy Outlook 2020 published, renewables – led by solar and wind – will be the fastest-growing energy sources over the next three decades, with renewable energy use in the power sector growing quickly in all three scenarios that BP has examined—Rapid, Net Zero, and Business As Usual (BAU).

The use of coal in developed economies is sliding because older coal-fired plants cannot compete economically with new natural gas and renewable capacity, Ethan Zindler, head of Americas at BNEF, says. Including hydropower, renewables accounted for three-quarters of all commissioned capacity globally last year. 

In fuel demand for road transportation, the higher the penetration of EVs in major automotive markets, the more oil (gasoline) demand could be displaced. China is also looking to boost EV use and has extended subsidies for EVs through the end of 2022, Ram Chandrasekaran, Principal Analyst – Transportation & Mobility at Wood Mackenzie, said last month. 

EV sales are set to benefit from the ‘green recovery’ plans of many governments, especially in Europe.

WoodMac expects total global EV fleet to jump to 323 million over the next 20 years—that’s 35 times the current level, as this year’s recession “has left a dent in the electric vehicle (EV) sector but it’s a scratch on the paintwork, not a big repair job.”

Renewable Energy in Pakistan

Solar system in Pakistan has become affordable as compared to conventional electricity. Renewable energy projects are now starting to compete with conventional power, proving they can replace conventional power in many countries, especially Pakistan.

Pakistan has set in motion a plan this week to boost the share of its electric power that comes from renewables to 30 percent by 2030, up from about 4 percent. The targets in the newly announced policy are a 20 percent share of renewables in installed capacity of Pakistan’s power mix by 2025 and 30 percent by 2030.

This not only include wind and solar power, but also geothermal, tidal, wave and biomass energy. With boosts in hydropower capacity expected as well, the shift could bring the share of clean energy in Pakistan's electricity mix to 65 percent by 2030.

However, the legislation leaves in place plans to build seven more coal-fired power plants as part of the second phase of the China Pakistan Economic Corridor project - something that could impede scale-up of renewable power.

The new national renewables policy, approved by the prime minister's cabinet in December, was delayed by the coronavirus pandemic and as negotiators tried to resolve disputes with individual provinces.

Now, the resolution of those disputes opened the way to "unleash Pakistan's full potential" for renewables, according to Asad Umar, federal minister for planning and development.

Shortage of energy is not new, successive Pakistani governments have pursued private sector investment in power production, offering lucrative returns backed by sovereign guarantees.

Power cuts and scheduled outages, known as load shedding, in urban areas were sharply reduced from about 12 hours a day previously to only occasional outages by mid 2018.

Despite the progress, seasonal production gaps and distribution woes remain. However, better than 2017, where prolonged power outages hit the country’s industrial production.

New investment in renewable energy is also expected to come from private investors, with potential suppliers bidding in annual auctions and low-tariff proposals winning.

Pakistan to Boost Renewable and Continue Coal Expansion

According to Syed Aqeel Hussain Jafry, policy director for the government's Alternative Energy Development Board, “Mix of renewables will be included mainly wind and solar power, plus geothermal, tidal, wave and biomass energy.” 

Pakistan has devised a strategic plan this week to boost the share of its electric power from renewables to 30 percent by 2030, up from about 4 percent today. With boosts in hydropower capacity expected as well, the shift could bring the share of clean energy in Pakistan's electricity mix to 65 percent by 2030, said Nadeem Babar, head of a task force on energy reforms in Pakistan.

Syed Aqeel Hussain Jafry, policy director for the government's Alternative Energy Development Board, stated that the targets in the newly announced policy are a 20 percent share of renewables in installed capacity of Pakistan’s power mix by 2025 and 30 percent by 2030. He also said that the policy represented a significant shift from the past, when investors approached the government with individual projects.

This include mainly wind and solar power, but also geothermal, tidal, wave and biomass energy, he said.

However, the legislation leaves in place, plans to build seven more coal-fired power plants as part of the second phase of the China Pakistan Economic Corridor project - something that could impede scale-up of renewable power, warned Zeeshan Ashfaq, a solar and wind energy developer in Pakistan.

Similarly, according to Ashfaq, managing director of SOWITEC (Solar Wind Technology) Pakistan, "A coal pipeline of around 4,000-5,000 megawatts will not provide much space for renewables.”

The new national renewables policy, approved by the prime minister's cabinet last December, was delayed due to coronavirus pandemic and negotiator’s efforts to resolve disputes with individual provinces.

But Asad Umar, federal minister for planning and development, said on social media the resolution of those disputes now opened the way to "unleash Pakistan's full potential" for renewables.

Reorganized sector

Power cuts and scheduled outages, known as load shedding, in urban areas were sharply reduced from about 12 hours a day previously to only occasional outages by mid 2018. Up until 2017, prolonged power outages hit the country’s industrial production. Hobbled by decades of energy shortages, successive Pakistani governments have pursued private sector investment in power production, offering lucrative returns backed by sovereign guarantees. Despite the progress, seasonal production gaps and distribution woes remain.

New investment in renewable energy is also expected to come from private investors, with potential suppliers bidding in annual auctions and low-tariff proposals winning, said Nadeem Babar, chair of the energy task force and now special assistant to the prime minister. 

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Incorporating solar harvesting into the side of buildings could enhance energy sustainability

If builders could start focusing on renewable energy and harvesting it into the siding of a building, the amount of energy from the grid that a structure would need may significantly decrease.

In research published recently in Renewable Energy, Diana-Andra Borca-Tasciuc, a professor of mechanical, aerospace, and nuclear engineering, along with his team of researchers from Rensselaer Polytechnic Institute, demonstrated the potential of wedge-shaped luminescent solar concentrators (LSCs). These efficient modular solar units could easily be hung on the side of a building.

 

What LSCs are made up of?

The LSCs used in this study are made of transparent plastic with a film of photo luminescent particles on the back, similar to those used in LEDS. Solar cells mounted on the larger edge of the LSC convert energy captured from the sun into electric power.

Previously, this unique shape and construction had only shown promise in theory. In this research, the team took that a step further and tested how these LSCs could function within the lab. The way these devices capture and concentrate sunlight enhances the power that is produced by each unit of surface area within a solar cell.

 

The team is now looking to optimize the shape of the LSC and is exploring ways it could engineer surface properties to more efficiently capture and retain the light entering the device.

 

The researchers also used light data from the field to help predict annual energy production if the LSCs were to be hung on walls. Based on data from Albany, New York, and Phoenix, Arizona, the annual energy production predicted for these devices was up to 40% more than the annual energy produced by solar panels, when both are installed vertically.

 

According to Borca-Tasciuc, this technology is not meant to replace solar panels, it expands the capacity to efficiently harvest solar energy in the built environment. It works well for vertical wall applications where a solar panel does not perform as well.

 

Moreover, Duncan Smith, a doctoral student in mechanical engineering at Rensselaer said, “As the world transitions toward carbon neutrality, using vertical surfaces effectively for solar power harvesting will be a necessity for the solar industry.”

 

"Particularly in urban settings, the roof area of taller buildings is usually dedicated to HVAC equipment and cannot be used for solar panel installations. In these same buildings, however, there is extra room on the walls."

 

The research team also worked with undergraduate students who were completing a capstone project through the Multidisciplinary Research Laboratory at Rensselaer, a space that provides real-world experiences for students in preparation for their future careers.

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Activists Slam Use of Coal for Power Generation

Activists have recently emphasized the need of renewable energy in Pakistan and highlighted the harmful effects of 'Coal-mining.

The Pakistan Fisherfolk Forum (PFF) first online rally on Wednesday, demanded to switch to alternative renewable energy solutions and suggested an end to the use of coal and other fossil-based fuel in power plants. Addressing the rally, PFF chairperson Muhammad Ali Shah said that coal power plants established on Sindh's coastal belt were a threat to the environment.

 

He added that they were unable to come out on the streets to protest for their cause due to the coronavirus pandemic, but they would continue to raise their voice through online platforms.

 

The online rally was attended by people affected by the power plants and the members of civil society from Pakistan as well as from abroad.

 

It is pertinent to mention here that reserves with 175 billion tonnes of coal had been found in Thar. However, coal mining is not favorable for either humans or the environment. Moreover, Gorano reservoir had displaced several people, their pathways and grasslands.

 

Moreover, water schemes were developed to provide water to run the Thar power plants, which were also harming people and the environment.

Shah reiterated that two dams had already been constructed at Nabisar and Vejhiar, while two others were also being developed and would be connected through a 62-kilometre long pipeline. Water for these schemes would be taken from the Makhi Farsh canal, which was at the tail end of Nara Canal, he explained.

 

"The residents of that area already do not receive water for agriculture. This withdrawal of water will further affect the area," he added.

 

Many activists opined that Pakistan could generate 300,000 megawatts of energy through windmills and thousands of megawatts through solar means. It seems that like that they are not against coal-powered plants, but want the promotion of alternative sources of renewable energy as well.

 

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