Sunverge and Delmarva Power announced that the two companies have entered into an agreement with PJM Interconnection (PJM) to explore how the Elk Neck Battery Storage Pilot Program will participate in the region’s wholesale market for ancillary services.
The project, a virtual power plant (VPP) with a planned capacity of 0.55 MW/2.2 MWh, is anticipated to be fully operational by Q1 2022 and has received the necessary regulatory approvals from Maryland regulators. The project will be the first battery energy storage residential VPP to participate in PJM’s wholesale market, potentially providing benefits to both consumers and the grid.
VPPs work to augment an electric supplier’s energy supply by relieving the grids of excess renewable energy as production spikes and absorbing excess energy when needed. The result is intended to reduce peak demand and provide fast frequency response to balance the grids. The renewable energy storage systems will collectively respond to grid needs dynamically, moment-to-moment.
The VPP is being used as a pilot project to prove the efficacy of distributed energy resources under real-world market conditions, demonstrating just how dynamic the grid has become and how new technologies can benefit customers and the broader regional energy system.
The Elk Neck Battery Storage Pilot Program is not the only residential virtual plant project Sunverge is currently working on. In late November, the company announced a similar project, being developed in partnership with LG Electronics USA for customers in Northern and Central California.
The California project is also expected to be operational in the first quarter of 2022, and is intended to explore ways in which intelligent and dynamic load control and solar/energy storage can be aggregated as dynamic multi-service and multi-asset VPPs. The intent is to create value on both sides of the meter and helping utilities transition to more resilient and flexible distribution grids.
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