[HN Gopher] DOE: Pathways to Commercial Liftoff: Virtual Power P...
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       DOE: Pathways to Commercial Liftoff: Virtual Power Plants
        
       Author : vikrum
       Score  : 72 points
       Date   : 2023-10-02 14:08 UTC (8 hours ago)
        
 (HTM) web link (liftoff.energy.gov)
 (TXT) w3m dump (liftoff.energy.gov)
        
       | photochemsyn wrote:
       | From the report:
       | 
       | > "DOE uses a broad definition of VPPs (virtual power plants)
       | that includes a variety of mechanisms for aggregating and
       | orchestrating DERs (distributed energy resources)"
       | 
       | > "Just as different types of traditional power plants contribute
       | to the grid in different ways (e.g., nuclear plants provide
       | baseload generation, and wind farms provide variable generation),
       | so too do different configurations of VPPs."
       | 
       | Historically grid structure in the USA was broken down into
       | baseload, load-following and peaker plants, a choice made based
       | on the technological limitations of the power sources (coal and
       | nuclear power could not be rapidly ramped up and down. so they
       | were assigned baseload status, while hydro and natural gas
       | could).
       | 
       | That all fails when you put large amounts of solar and wind on
       | the grid, e.g. a large solar PV system might generate 200% of
       | demand at noon, (so you divert half or more to storage for use at
       | night). Fundamentally this means scrapping the whole concept of
       | baseload generation, and instead focusing on storage and
       | distribution of energy from highly variable renewable sources -
       | which is why nuclear is difficult to integrate smoothly with
       | renewables, it's not very flexible. However, DOE is a very pro-
       | nuclear agency, hence their reluctance to abandon the baseload
       | concept.
       | 
       | I suppose VPPs are a useful abstraction for managing a wide
       | variety of resources in one geographical area, but the reality is
       | that replacing fossil fuels with electricity across the board
       | will require truly massive grid infrastructure investments. This
       | will require either steep increases in energy bills for
       | consumers, or large tax-financed government subsidies of grid
       | infrastructure, and possibly even nationalization of the grid.
        
       | chongli wrote:
       | Sounds like this opens up the possibility of a "virtual" power
       | generation company to operate entirely by, say, leasing rooftop
       | space (for solar cells) all over a grid and trading on the open
       | market as a single producer rather than needing all of the
       | individual property owners to do their own trading. Seems
       | reasonable to me!
        
         | datadrivenangel wrote:
         | There are several companies that do this for electric car
         | chargers!
        
       | mrbonner wrote:
       | What a horrible naming convention. Is it plantless power plant?
        
         | SamBam wrote:
         | Essentially.
         | 
         | If you can convince every supermarket in the area to designate
         | a quarter of their overhead lights as "optional," and then
         | install a device that allows the "virtual power plant operator"
         | to turn off all of those lights during an unexpected spike in
         | electricity demand, you've just "generated" the additional
         | 100kW the grid needed in that moment, just like a regular
         | fossil-fuel power plant would have. (And you then pay the
         | supermarket for the electricity they "generated" by turning off
         | their lights.)
         | 
         | Do the same with smart thermostats, or tapping into people's
         | power walls, etc etc etc, and you may be able to "generate"
         | many megawatts of power without owning a plant.
        
           | Scoundreller wrote:
           | With phones becoming the "hub" of many homes and Apple
           | launching some (nearly inconsequential) eco-charging
           | functionality in ios17 to avoid charging with emitting
           | sources are running in your area, I could see them really
           | executing on this.
           | 
           | (I also wish my fridge and other devices had a better ability
           | to capture the ebb and flow of electricity prices. Even
           | trying to do this with a "smart" thermostat, an ecobee was
           | very difficult. Required lots of manual scheduling.)
        
             | megaman821 wrote:
             | I have a LG fridge that can reduce its power consumption
             | when requested. I have never seen it turn on though, so it
             | must require some coordination by the utility that isn't
             | there yet.
        
               | Scoundreller wrote:
               | I'm on time of use billing, and I don't want my fridge to
               | reduce its net power consumption.
               | 
               | In fact, I want it to _increase_ its net power
               | consumption by running hard when rates are low, and
               | backing off when they're expensive. So overall _cost_
               | will decrease without any spoilage impacts while
               | consumption goes up.
               | 
               | This approach also minimizes the amount of time the
               | fridge is working against my air conditioner. And
               | maximizes the time it's working with my furnace on cool
               | nights.
               | 
               | The most thermally/kwh efficient fridge keeps its
               | temperature the same at all times, but that's not the
               | most cost efficient/climate efficient approach.
               | 
               | It's like we're not ready to have that conversation.
        
       | leetrout wrote:
       | Never heard of a "virtual power plant". So they are aggregate
       | power generation instead of a fixed plant... interesting naming
       | choice.
       | 
       | > Virtual power plants, generally considered a connected
       | aggregation of distributed energy resource (DER) technologies,
       | offer deeper integration of renewables and demand flexibility,
       | which in turn offers more Americans cleaner and more affordable
       | power.
       | 
       | https://www.energy.gov/lpo/virtual-power-plants
        
         | gwbas1c wrote:
         | One example is coordinating Tesla Powerwalls (home battery
         | backup): https://www.tesla.com/support/energy/virtual-power-
         | plant/pge
         | 
         | > By becoming a part of the Tesla Virtual Power Plant (VPP)
         | with PG&E, your Powerwall will be dispatched when the grid
         | needs emergency support. Through the Emergency Load Reduction
         | Program (ELRP), you will receive $2.00 for every additional kWh
         | your Powerwall delivers during an event.
         | 
         | I should point out that I have a Powerwall, and I have no
         | incentive from my electric utility to use it in any way.
         | Overall, with rebates, it cost slightly more than a standby
         | generator, and but it requires no maintenance, so it's "worth
         | it" for me.
         | 
         | But, $2.00 back on a kwh is pretty nice, IMO.
        
           | Scoundreller wrote:
           | Why $2 though? When prices hit $1.50, they'll just hit up
           | their physical generators instead of your battery?
        
           | noveltyaccount wrote:
           | Wow - $2.00 is crazy. I pay $0.15 per kWh (pacific northwest,
           | inexpensive hydroelectric power). 13X, quite an incentive,
           | even if rare.
        
             | zbrozek wrote:
             | California's PG&E is the biggest utility in the US. In
             | their territory electricity on the default residential plan
             | ranges from $0.41 to $0.54 per KWh.
        
               | callalex wrote:
               | And they're raising prices again next year.
        
               | gwbas1c wrote:
               | Still, that's 4x back. It really helps incentivize buying
               | a larger powerwall, and disincentivizes the power company
               | from sapping the battery dry right before you need it.
        
               | zbrozek wrote:
               | Yeah, I'm not saying it's a bad deal for the battery
               | owner, but rather that it isn't the huge spread that you
               | had assumed based on a reasonable electricity price.
               | :shrug:
        
               | Scoundreller wrote:
               | How many hours a year would one expect to get this?
        
             | toomuchtodo wrote:
             | You're paying retail rate. The utility pays spot prices and
             | attempts to manage the spot price vs retail rate spread
             | over a window of time.
        
         | SamBam wrote:
         | To be clear, I think it's as much about the aggregation of
         | "Distributed Energy Resources," DERs, as about the aggregation
         | of _generation_.
         | 
         | From my understanding, a DER can be as simple as a smart
         | thermostat that can receive a signal from the utility company
         | to set the AC up a couple of degrees during a period of high
         | electricity demand.
         | 
         | As energy is fungible, saving 1kW by turning off 1kW of less-
         | necessary usage is exactly the same as generating an additional
         | 1kW to cope with demand.
        
           | soulofmischief wrote:
           | Exactly the same, except during the hottest and coldest parts
           | of the year, I pay an electric bill and still feel miserable.
        
             | ZeroGravitas wrote:
             | The point of these schemes is to provide you with energy at
             | precisely those hottest/coldest parts of the year. If you
             | want to pay more for potentially redundant backup and/or
             | take the risk of the whole system going down, then you're
             | only going to be more miserable.
        
           | magicalhippo wrote:
           | > exactly the same
           | 
           | Of course except it's only the same if they're closely
           | connected.
           | 
           | Here in Norway, while energy regions are connected throughout
           | the country, the cables are quite limited between certain
           | areas. So generation here might not help for usage there.
           | 
           | So being able to control usage, or having extra batteries
           | connected near the loads, can be even more useful than extra
           | generator capacity far away.
        
             | jakewins wrote:
             | Aye but y'all are way ahead! I get to hack on software that
             | bids into DSO-level circuits for NODES up in Norway.
             | 
             | I imagine Norway is seeing a lot of the issues - and
             | opportunities - that having high EV penetration brings, so
             | a good place to watch for what works and what doesn't.
        
         | ghouse wrote:
         | It's a horrible naming choice and it shows the industry
         | preconception that a power plant is a large, transmission-
         | interconnected facility.
         | 
         | It also, IMHO holds on to an outdated concept that all
         | generation must be centrally dispatched. There are plenty of
         | concepts that allow distributed dispatch including voltage
         | (which in turn can be controlled based on local conditions).
         | 
         | Finally (and perhaps most importantly), it implies that only
         | devices that export generation are part of the solution. The
         | supply and demand must be balanced in real-time. And the demand
         | side of the equation is often much less expensive than the
         | supply side.
        
           | ZeroGravitas wrote:
           | Virtual Power Plants, both in general (see first sentence on
           | wikipedia:
           | https://en.wikipedia.org/wiki/Virtual_power_plant), and
           | specifically in the definition given in the comment you
           | replied to, include "demand flexibility" so your comment is
           | confusing.
        
           | garba_dlm wrote:
           | it's an attempt to bridge the language
           | 
           | because you're right, the people that own this stuff (and
           | work on these companies) are used to thinking in terms of
           | large transmission-interconnected facilities.
           | 
           | so my take this move has most to do with how to bill people,
           | and how to collect payments and pay taxes on said payments
           | and so on. I expect that the actual electrical engineering is
           | treated as an implementation detail
        
           | idiotsecant wrote:
           | What? It's the opposite of literally all these things.
        
             | sunk1st wrote:
             | Yeah I think that's why GP is saying it's a poor choice of
             | name.
        
               | SamBam wrote:
               | But if the industry is the one naming it, why are they
               | going against their own "preconceptions?"
               | 
               | I feel like GGP is the one with the preconception about
               | the name "power plant," while the industry (as shown
               | here) is starting to use it to be this broader term
               | encompassing distributed generation and price-influenced
               | demand, etc etc.
        
               | ghouse wrote:
               | As an industry, the term "power plant" is something that
               | generates power (electric energy). However, much of the
               | DER opportunity is not generation, but load. Which is why
               | the term "Virtual Power Plant" is a misnomer and
               | predisposes people to only be thinking about the
               | generation side of the supply/demand equation.
        
               | SamBam wrote:
               | Right, but it's precisely that shift that the term is
               | supposed to induce. From a fungible energy perspective,
               | there really isn't that much difference between
               | increasing the supply by an additional MW and decreasing
               | the demand by an additional MW. Moreover, that additional
               | MW that's now in the grid is the greenest possible
               | energy, provided without producing a single atom of CO2.
               | 
               | When people thinking about generation they think about
               | something different than reducing demand, but it's
               | critical to start seeing that those can be the same
               | thing, in certain circumstances.
        
               | sanderjd wrote:
               | But "PP"s, that is, normal power plants that aren't
               | compromised of DERs, are not going to partake in this
               | shift of the term from meaning "generation" to meaning
               | "generation or load shedding". So you end up with "power
               | plants" that everyone understands are suppliers of power
               | and "virtual power plants" that are, confusingly, a mix
               | of demand reduction and maybe some supply.
               | 
               | So I agree that the VPP terminology leaves a lot to be
               | desired. I prefer the more generic "DER" terminology,
               | because it is more descriptive; either a generator or a
               | load is an "energy resource", and "distributed" is a good
               | description of what is unique about these particular
               | energy resources.
        
         | hosh wrote:
         | I heard of the concept for some time but I guess someone is
         | coining it as a term to make it an easier sell.
        
           | Animats wrote:
           | Right, this is new hype for an old concept. It's mostly load
           | management, with some batteries.
           | 
           | Calling this "virtual power plants" is deceptive. It doesn't
           | generate power. It just moves the load around in time a bit.
           | There are limits to how much benefit that can yield. At some
           | point, customers will want to heat their water or charge
           | their car.
           | 
           | Much of this is a attempt to deal with the problem of
           | intermittent wind power. Wind power varies about 4:1 over the
           | course of a day. Here's today's graph for CAISO, for the West
           | Coast.[1] And for PJM, for the East Coast[2]. Both had about
           | a 4:1 range today, and for both, it bottomed out about now,
           | in late morning. A huge tie line from California to
           | Pennsylvania would not have helped. Peak wind output today
           | was before dawn, which is the lowest period for load.
           | 
           | At least with solar you know when there's going to be output.
           | But even that can vary about 2:1 from day to day in PJM's
           | area.[3]
           | 
           | The important question to ask is, if the grid has N hours of
           | storage, how often is there a power shortage? What should N
           | be? A few hours? A few days?
           | 
           | [1] https://www.caiso.com/TodaysOutlook/Pages/supply.html
           | 
           | [2]
           | https://dataviewer.pjm.com/dataviewer/pages/public/wind.jsf
           | 
           | [3]
           | https://dataviewer.pjm.com/dataviewer/pages/public/solar.jsf
        
             | sanderjd wrote:
             | > _It 's mostly load management, with some batteries._
             | 
             | There is some amount of distributed generation out there as
             | well, in the form of either oil or natural gas backup
             | generators, which can be used similarly as batteries.
             | 
             | Edit to add: This wasn't meant as a disagreement with your
             | point. I don't think the existence of a small amount of
             | generation changes the fundamental equation you pointed out
             | on this.
        
         | 7thaccount wrote:
         | Yes. VPPs was the more common academic term used for many
         | years. Recently, FERC came out with Order 2222 that essentially
         | paved the way for Distributed Energy Resources (DERs) to
         | participate in the wholesale electricity markets (think
         | organizations like CAISO that determine the optimal schedules
         | for thousands of power plants on an hourly and 5-minute basis
         | via a market) via a DER Aggregator.
         | 
         | So if you take all these infinitesimally small sources and add
         | them up, a single entity can be a market player for them as a
         | kind of tiny virtual power plant. Naturally, this is extremely
         | complicated and took years to get through the legal processes
         | and for the various grid operators to get it figured out. It's
         | still a work in progress.
        
       | jakewins wrote:
       | I work on building VPPs. Two interesting problems that come up:
       | 
       | - Counter-factuals; you're often paying someone to _not_ do
       | something, and it is really, really confusing and hard sometimes
       | to measure whether something didn 't happen. The car didn't
       | charge at 4pm.. would it have charged if we hadn't told the
       | charger to not charge at 4pm? What if the owner planned to leave
       | at 4.10pm anyway?
       | 
       | - Double counting & profit sharing: There is a surprising amount
       | of money on the table here and kind of a sudden frenzy - what
       | happens when Ford auto-enrolls your new car into their VPP for
       | their own purposes, and you sell it yourself to an aggregator
       | like us, and your utility sells it too? And how do the proceeds
       | get split?
        
         | Scoundreller wrote:
         | Or you enrol your smart thermostat to raise its set point a few
         | degrees during a "grid event", but you put a heat pack under
         | it.
        
       | [deleted]
        
       | syntaxing wrote:
       | My knowledge might be old but I've been told one of the biggest
       | expense for a utility are actually Peakers (more formally known
       | as Peaking power plants). Besides the fact they're costly to
       | operate compared to normal power plants (about 3X of generating
       | cost), it takes a lot to warm up these power plants at a moment
       | notice. VPP (as shitty as the name is) would help our
       | infrastructure a lot, and would be a net positive for society
       | IMO.
        
         | Scoundreller wrote:
         | > Besides the fact they're costly to operate compared to normal
         | power plants (about 3X of generating cost), it takes a lot to
         | warm up these power plants at a moment notice.
         | 
         | Our solution in Toronto was to just run them half of the time
         | all the time.
         | 
         | Haaaaaaard paywall:
         | https://www.thestar.com/news/canada/ontario-gas-plants-were-...
        
           | syntaxing wrote:
           | Wouldn't it be more cost effective to make a new power plant
           | at that operating expense?
        
             | Scoundreller wrote:
             | I think the warm-up cost isn't really there when the plant
             | is operating continuously.
             | 
             | Oddly for a peaker plant, they built these as combined
             | cycle, which wouldn't make financial sense if it was to
             | only run for short periods.
             | 
             | A "true" peaker plant is inefficient but with lots of
             | capacity but we basically build a "proper" power plant that
             | has good efficiency, so it's not too bad. But makes you
             | wonder what went so wrong in the planning (even though the
             | mistake turned out advantageous).
        
       | leymed wrote:
       | I'm not saying it will not have any impact, but will it be at the
       | levels mentioned in the report?
       | 
       | My consideration depends heavily on engineering of it. For
       | example, applying this in NYC is almost impossible, and dangerous
       | for the system. Again you can have DER aggregation at smaller
       | levels, but hitting 20% of pick load levels seems extremely
       | challenging.
        
       | whiddershins wrote:
       | I listened to a whole Joe Rogan podcast where a guest kept
       | advocating for using nuclear to balance out the intermittent
       | nature of solar and wind.
       | 
       | I could never wrap my mind around how this makes sense. Nuclear
       | has a fixed output, it doesn't scale up and down the way fossil
       | fuel plants do.
       | 
       | If your nuclear capacity can cover the worst case where solar and
       | wind aren't producing, it can cover all cases, and the solar and
       | wind become irrelevant.
       | 
       | Seems like the linked concept is similarly making something more
       | complicated in the hopes that somehow makes it better.
       | 
       | Like bundling subprime mortgages.
        
         | arc-in-space wrote:
         | >If your nuclear capacity can cover the worst case where solar
         | and wind aren't producing, it can cover all cases, and the
         | solar and wind become irrelevant.
         | 
         | This is plainly false; nation-wide energy consumption isn't
         | fixed, it adapts to supply. Not all usage of energy is equally
         | valuable, if the prices go up, you might choose to turn off
         | your TV, but you'll probably keep your fridge running. With
         | more energy, more activity can happen at lower prices.
        
         | gwbas1c wrote:
         | > Nuclear has a fixed output, it doesn't scale up and down the
         | way fossil fuel plants do.
         | 
         | This is a very, very old, and very, very solved problem.
         | 
         | Today we'd solve it with batteries: Discharge when demand
         | outstrips supply, recharge when supply outstrips demand.
         | 
         | In the past, nuclear power was often paired with pumped
         | storage: https://en.wikipedia.org/wiki/Pumped-
         | storage_hydroelectricit...
         | 
         | Today a lot of pumped storage facilities have outlasted the
         | nuclear power plants they were built to support. Instead of
         | pumping at night, they pump when there's excess solar or wind.
        
         | mschuster91 wrote:
         | > Seems like the linked concept is similarly making something
         | more complicated in the hopes that somehow makes it better.
         | 
         | Because battery storage _is_ legitimately better in terms of
         | reaction time and efficiency: pumped hydro is 2 min from 0 to
         | 100%, with a total efficiency ratio between .65-.85 [1], gas
         | plants are at 3-5 minutes (peakers) /up to 30 min (combined
         | power+heat) [2] and .35-.50 efficiency ratio (more if thermal
         | energy is captured, but that only makes sense for non-peaker
         | plants that also provide district heating)... whereas a battery
         | plant's reaction time can be measured in milliseconds.
         | 
         | That's orders of magnitude faster and is what makes
         | decentralized battery storage worth it.
         | 
         | [1] https://um.baden-
         | wuerttemberg.de/de/energie/versorgungssiche...
         | 
         | [2] https://www.ingenieur.de/fachmedien/bwk/erneuerbare-
         | energien...
         | 
         | [3] https://www.deutschlandfunknova.de/nachrichten/australien-
         | ri...
        
         | robertlagrant wrote:
         | It's definitely not perfect, but e.g. with pumped hydro, you
         | can run it in peak hours when demand exceeds baseline supply.
        
         | 2OEH8eoCRo0 wrote:
         | > Nuclear has a fixed output
         | 
         | A fixed thermal output or a fixed electrical output?
        
         | datadrivenangel wrote:
         | Modern nuclear plants can scale much more aggressively than
         | older plants. This is also true of coal plants as well. Still
         | not perfect to have them be load following resources though.
        
         | idiotsecant wrote:
         | That's exactly what you want for easy control of grid
         | stability. Say you typically fluctuate between 100 and 150 GW
         | of demand. You turn on 80GW of nuke, leave it running all the
         | time, and then as resources come available from intermittent
         | sources those can contribute to total load requirements. If you
         | have a wide enough diversity of intermittent sources this works
         | well. The problem with intermittent generation sources is that
         | you must either store energy or overprovision generation to
         | make up for the gaps in availability (or make wildly expensive
         | transmission improvements but that is another discussion). For
         | reasons of expense and reliability you must make a tradeoff
         | between how much of your generation is reliable baseload and
         | how much is intermittent generation. Nuke + intermittent
         | sources is a very good match.
        
           | eppp wrote:
           | You could also add time of use pricing to encourage use
           | during peak renewable generation.
        
             | Scoundreller wrote:
             | My jurisdiction rolled out millions of Time of Use smart
             | meters only to find that residential users really didn't
             | change their behaviour much. Demand shifting was something
             | like a couple percent and faaaar less than predicted.
             | 
             | It turns out when you run surveys, it's the people that
             | like to think about answers to questions that respond to
             | them, which isn't representative.
             | 
             | 45pg pdf government report: https://www.auditor.on.ca/en/co
             | ntent/annualreports/arreports... which starts getting good
             | at page 5.
             | 
             | Understated costs and exaggerated benefits. Peak reduction
             | targets ended up with increases in peak demand.
             | 
             | As hard as it is for the HNer to believe, the vast majority
             | of people will just do whatever they want whenever they
             | want.
             | 
             | I see this everywhere: "why would _anyone_ go to this
             | expensive supermarket that sells the same crap as the cheap
             | one I go to? Why would anyone go to that gas station, their
             | price is always higher than the others in the surrounding
             | area. Why would anyone buy that car, it has a terrible TCO,
             | and on and on"
        
               | toast0 wrote:
               | That makes sense. Running laundry or other household
               | equipment when energy is cheaper makes sense, but it
               | requires a different time commitment. Cooking at other
               | times to save energy costs is unlikely.
               | 
               | You'd get more participation if appliances could be
               | smarter without increasing cost. The holy grail of delay
               | freezer defrost cycles until off-peak, and relaxing
               | temperature thresholds a bit to pre-heat or pre-cool
               | towards the end of off-peak and let things go a bit
               | farther off the set point while on-peak aren't realistic
               | for say water heaters, because the increased consumer
               | costs to do that (more expensive equipment, more time to
               | set settings, most likely some signalling or networking
               | to maintain) don't justify the savings.
               | 
               | I'm guessing there's reasonable uptake on smart
               | thermostats that can participate in demand control,
               | because smart thermostats are desirable anyway, network
               | anyway, and can control large enough loads to matter. Not
               | everybody will want it, but I'd be ok with starting peak
               | a degree cooler or warmer than my set point, and letting
               | the temperature float a degree farther during peak,
               | because HVAC uses a lot of kWh and why pay 2x for
               | those... but then I'm in a low energy cost area with flat
               | rates, so maybe I would change my mind after experiencing
               | it. :)
        
               | Scoundreller wrote:
               | Yeah, basically a human factors approach will work better
               | than asking general users to vastly increase their
               | cognitive load and/or increase capex for a small value of
               | savings.
               | 
               | Free LED light bulb handouts are more effective than
               | complex expensive-to-implement programs requiring user
               | intervention. Mandating low gpm showerheads works better
               | than asking people to take short showers. Better windows
               | per building code works better than asking people to
               | choose the exotic greenbug window, etc.
        
               | knutzui wrote:
               | ToU pricing can be very effectively used by having an
               | energy management system. This will automatically shift
               | power usage to the most cost efficient times.
        
               | Scoundreller wrote:
               | In theory. After 15 years, the best most of us in Ontario
               | have is a "4h delay" on a dishwasher and discounted (not
               | free) smart thermostats that you have to install yourself
               | or pay an installer for. I suppose electric cars do a
               | good job here at least.
               | 
               | And this is in new construction.
               | 
               | Overall, it didn't (and may never) make financial sense
               | to put light users on smart/time of day metering.
        
         | toast0 wrote:
         | > I could never wrap my mind around how this makes sense.
         | Nuclear has a fixed output, it doesn't scale up and down the
         | way fossil fuel plants do.
         | 
         | Nuclear can and does regulate its output. And the fuel rods
         | should last longer if you run at less than full output. But
         | fuel cost is not a large component of nuclear energy cost, so
         | it doesn't make a lot of economic sense to operate them far
         | above or below their steady state maximum capacity.
         | 
         | I agree that nuclear doesn't make a good backfill for
         | intermittant sources; but it's not because they can't, it's
         | because the economics aren't good.
        
           | pbmonster wrote:
           | > Nuclear can and does regulate its output.
           | 
           | They do in France. You kind of have to, if you produce 70% of
           | your power in nuke plants. But in the US, it's not done in
           | any meaningful sense. All US plants run at 100% capacity all
           | the time.
           | 
           | The reason for that is that it's incredibly complicated to
           | ramp a nuke plant. If you take a reactor and reduce its heat
           | output significantly, the currently active volume of fuel
           | moves away from the decay product equilibrium - the reactor
           | poisons its own fuel rods with neutron absorbing decay
           | products. This makes a subsequent increase in output power
           | extremely dangerous and thus impossible in practice. The only
           | way to increase power safely is to wait for the radio poison
           | to decay naturally, which can takes tens of days (and depends
           | on by how much you reduced power).
           | 
           | The only reason the French can ramp the power of their
           | nuclear plants up and down is that they have so many of them,
           | and they are all controlled by a central authority. This
           | means the reactors can take turns in reducing power, each
           | night a different set of reactors poison their fuel and
           | recover slowly over the next week or two.
           | 
           | There is also of course an economic side to this. In the US,
           | nuclear power is so economically risky that planning a plant
           | that is not trying as hard as it possibly can to recoup it's
           | enormous investment would sound crazy to investors. It would
           | make zero economic sense to not run at 100% all the time, and
           | would probably make any newly build plant a billion dollar
           | loss instantly.
        
       | walr000s wrote:
       | The best explanation of Virtual Power Plants that I've
       | encountered, from Patrick McKenzie:
       | https://www.bitsaboutmoney.com/archive/markets-in-power/
        
       | klysm wrote:
       | Putting the name aside, this seems like an important step
       | forward.
        
         | antr wrote:
         | I'll say something unpopular, but the best VPP alternative out
         | there is the transmission system operator (doing its job well).
         | 
         | VPPs are a great way for utilities and other companies to get
         | customers hooked into long-term contracts and milk for more
         | fees.
        
       | vvpan wrote:
       | I work for a tech startup that is focused on cooperatives and so
       | have been learning about the cooperatives a lot lately.
       | Cooperative have and still are playing a great role in things
       | like energy and farming. Much of the grid in the US has been
       | built by cooperative. But the legislation around them is outdated
       | and also inter-cooperative support structures are lacking, for
       | example the massive farming lending cooperatives will not lend to
       | energy-related co-ops. Our founders moved to Colorado to start
       | the company (which specialized in delivery cooperatives) because
       | Colorado offers the Limited Cooperative Association entity [0].
       | (As an aside I have interviewed with a startup, that we are also
       | in communications with, called React Network [1] that is
       | specifically focused on co-cops that coordinate energy production
       | and storage). I am honestly not sure what point I am trying to
       | make except that I wish co-ops played a great part in the energy
       | future.
       | 
       | [0]
       | https://www.sos.state.co.us/pubs/business/news/2012/20120402...
       | 
       | [1] https://www.reactnetwork.io/
        
         | sanderjd wrote:
         | Would you mind sharing the company you work for? Seems really
         | interesting! I'm also hopeful about cooperatives, but don't
         | actually know much about what they're up to in the energy
         | space.
        
           | vvpan wrote:
           | noshdelivery.co provides technology to local restaurants to
           | operate their own delivery services (ordering app/driver
           | management/etc). The restaurants that we partner with form a
           | cooperative and get the software while we get a non-voting
           | stake. I think it is quiet cool. The truth is that delivery
           | companies are a scourge on the restaurants and restaurants
           | will go to great length to avoid working with Grubhub,
           | Doordash, etc. We are planning on expanding into a few more
           | cities.
           | 
           | If you are interested in cooperatives the most prominent
           | public thinker on the topic these days is Nathan Schneider,
           | who is a professor at CU Boulder and one of our advisors. For
           | example look up an interview with him on "Frontiers of
           | Commoning" podcast - "Nathan Schneider on Cooperatives and
           | Digital Governance". It is an excellent listen.
        
       | datadrivenangel wrote:
       | I wrote a book on the topic of Virtual Power Plants! [0]
       | 
       | It's good to see the DOE taking this seriously.
       | 
       | [0] Virtual Power : The Future of Energy Flexibility
        
         | idiotsecant wrote:
         | How do wheeling charges work in schemes like this? If I have,
         | for example, a fleet of EVs signed up for my VPP program and I
         | want to sell battery power onto the open market I am putting a
         | not insubstantial load on the local residential distribution
         | systems that are not usually designed for this kind of power
         | flow. Is this captured somehow in the financial model? Surely I
         | don't get to ride that infrastructure for free?
        
           | datadrivenangel wrote:
           | EV charging and distribution is a big issue for the grid,
           | because it does require a lot of investment in heavier
           | infrastructure, literally more wires so that you can get
           | enough power to charge your car. Grid operators are grumpy
           | about needing to make this investment.
           | 
           | Networking all of the chargers / vehicles into a VPP, means
           | you can actually defer some of that investment (don't have
           | all the vehicles charge at the same time or at full speed if
           | the local distribution is congested), or provide a valuable
           | service to the grid in the form of demand response (Hey grid
           | operator, this fleet of cars always charges between 5:30pm
           | and 7pm. How much would you pay for 50 Megawatts of lower
           | consumption?). So basically it makes it cheaper to charge
           | that fleet of EVs from the grid infrastructure and operation
           | perspective if you charge them smarter and make the whole
           | system smarter.
           | 
           | The VPP operators use this as an additional revenue service
           | for the actual asset. The grid is overall cheaper, and the
           | VPP operator and asset owner get a cut of those savings.
        
             | mschuster91 wrote:
             | > Grid operators are grumpy about needing to make this
             | investment.
             | 
             | Boo fucking hoo. Grid operators have made absurd profits by
             | running grids that hadn't seen an inspection crew for
             | decades, to the tune that they regularly cause deadly
             | wildfires. PG&E is particularly egregious here - the 2018
             | Camp Fire was likely caused by a broken C hook dating back
             | to the line's construction in _1921_ [1].
             | 
             | Sorry, I can't sympathize with grid operators.
             | 
             | [1] https://hackaday.com/2020/09/17/closely-examining-how-
             | a-pge-...
        
               | datadrivenangel wrote:
               | I agree! Many aspects of deregulation have been
               | exceedingly negative, and a lot of investment is needed
               | to decarbonize the grid anyways.
        
         | datadrivenangel wrote:
         | The real exciting thing about Virtual Power Plants, is that
         | they expose the cost information to the end user.
         | 
         | Like software reliability, additional 9s of service get
         | progressively more expensive. Rolling blackouts on the hottest
         | summer days are BAD and have costs associated with them, and
         | peaking plants make a ton of money by running only a few days
         | per year. It's almost the grid scale equivalent of having a gas
         | generator so you can run extra window AC units because you keep
         | tripping the breaker. Much cheaper to just turn the thermostat
         | up a little bit and accept it being warmer, or turn off your
         | cryptominers when the cost is that high.
        
         | inemesitaffia wrote:
         | Link is appropriate here
        
       | [deleted]
        
       | ghouse wrote:
       | The electrical grid is designed to cover the highest load
       | (typically the hottest hour of the year; A/C drives peak load).
       | 
       | Most of the grid is a fixed cost. The transmission lines,
       | distribution lines and the power plants recover enormous
       | investments whether they are used or not.
       | 
       | The marginal costs are surprisingly low. Marginal costs of fueled
       | (fossil or nuclear) power plants are _typically_ < $0.05/kWh.
       | 
       | Peak load is what drives capacity expansion -- both in wires
       | (transmission and distribution) but also generation. Building all
       | of this capacity to only run for < 1% of the year incurs
       | tremendous cost.
       | 
       | By flattening the (demand) curve (through either generation or
       | load reduction) there are tremendous savings for society.
       | 
       | However, electric utilities are natural monopolies, so investor
       | owned utilities (contrasted with munis or coops) must
       | substantiate investment to their regulators who in turn allow
       | them to make a rate of return on their investments. So, these
       | utilities only increase profit by increasing investment.
        
         | szaroubi wrote:
         | There are some other interesting use cases for smarter energy
         | consuming devices, what they call Cold Load Pickup, where a
         | section of the grid loses power during a blackout, and power
         | comes back. that initial spike kills equipmenton the
         | transmission side, if you are able to delay start some
         | equipment, you spread the load and reduce strain on the grid.
        
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