The “Virtual Electric Utility” via Advanced Energy Control and Communications Systems: Backup Generation Offers a Surprisingly Large, Untapped Resource

Abstract

ABSTRACT Perhaps the most complex application of distributed energy (DE) today, encompassing both distributed generation (DG) and load management (LM), is the aggregation of these resources in real time for sale into wholesale power or ancillary markets. Sometimes referred to as a “virtual utility” or “networked DG,” this application is on the frontier of what today's control and communication systems can do and is setting the requirements for future hardware, software and policy developments. Solutions for “smart” control of multiple DG and LM resources often require the ability to respond to external price signals, starting or stopping equipment as appropriate, selling power or capacity into power exchanges, and diagnosing system problems. They also must have compatible communication interfaces between many types of equipment and the outside world of the power markets. The communication system may require connection via existing control systems such as local supervisory control and data acquisition (SCADA) systems, building control systems, and Internet/intranet systems. Recent developments in communication options are opening up exciting new possibilities for using distributed energy in real-time applications as well as making important but mundane processes, like emergency backup testing and reporting, more thorough, more robust, and easier.