Virtual power plant services model to pool utility assets
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Solnet Group, a European project planner of commercial & industrial solar installations, is launching virtual power plant (VPP) services for solar companies in the balancing markets.
The Finnish company’s Solnet Manager platform will allow commercial and industrial solar utilities and energy storages to join a collective pool of VPPs, enabling them to participate in balancing markets, contribute to greater grid stability and earn additional revenue.
The company claims the platform will be the first of its kind globally as the model will allow participatory companies in the network to receive compensation for being on standby and providing production flexibility.
Specifically, the platform will control a diverse pool of solar utilities and energy storage units as a virtual power plant, optimising their flexible renewable capacity to provide auxiliary services.
The platform handles all necessary services, including participation, reporting, aggregation of combined virtual power plant capacity and targeting of balancing markets for profitability.
Under a service model, Solnet Group takes care of the logistics, from device integration and onboarding to management and report generation. Business Finland has provided funding for the project in its research phase.
Solnet Manager – Virtual Powerplant Services for Solar will be available during 2024 as the first in Finland.
“With the launch of Solnet Manager, we are addressing a crucial gap in virtual power plant participation for small and mid-scale installations. This will bring a new era to solar PV and energy storage markets, as it makes onboarding variable-size utilities for balance market participation easy, cost-effective, and profitable,” said Arttur Kulvik, SVP and co-founder of Solnet Group, who has been responsible for the development of Solnet Manager.
“In doing so, they can become part of the solution for overcoming the volatile nature of renewable energy production and grid congestion issues, earning additional revenue while ensuring the optimal functioning of energy grids.”
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In a release, Solnet cites fluctuating production of renewable energy sources and geopolitical uncertainties, which have led to increased volatility in energy prices and instability in electricity markets.
Solar utilities and energy storage units, they add, can play a crucial role in grid balancing services, helping counteract the variability of renewable energy generation and generating extra income for participants.
Previously, such market opportunities were available only to large-scale energy consumers and producers, but now smaller commercial solar utilities and variable-capacity energy storage can also partake.
According to Solnet, the platform’s launch is timeous, referencing provisions for solar power in the European Performance of Buildings Directive, confirmed by the EU in March 2024, which will further increase the number of industrial and commercial onsite solar installations.
The directive requires the installation of onsite solar power systems across Europe on all new commercial and public buildings by 2026, on all commercial and public buildings undergoing major renovations by 2027, on all new residential buildings by 2029, and on all existing public buildings by 2030.
Solnet Manager is launched first in Finland, with planned subsequent markets including the Netherlands and Germany.
