Analysis of the evolution， key technologies， and challenges of virtual power plants in China

Abstract

Virtual power plants （VPPs） have become a critical tool in advancing a clean， low-carbon， safe， and efficient modern energy supply and consumption system. This paper begins by exploring the evolution of VPPs in China， outlining their historical development and current status. It also provides an overview of VPP development across five key areas： policy， platform， regulation， business， and market dynamics. The paper further traces the trajectory of VPP development in China， highlighting three distinct phases： the three-stage VPP model， the three-period VPP model， and an overarching developmental trend. A comparative analysis of VPPs both domestically and internationally reveals that China’s VPP model shares similarities with the European and U.S. models in terms of energy structure and market mechanisms. The paper then delves into the significant contributions of VPPs across various sectors， including the generation， grid， demand， regulatory， industry， and market sides. Finally， based on the practical application of VPPs， the paper identifies 10 key VPP technologies and examines eight major technological challenges， offering insights and recommendations to support the rational and rapid development and commercialization of VPPs in China.

Keywords

• virtual power plant
• new-type power system
• demand response
• energy internet
• integrated energy
• electricity market
• “dual carbon” goals