China, Malaysia Explore Development of Virtual Power Plants

Virtual Power Plants

Virtual Power Plants are touted as the next big step in solar industry that is driving the new wave of energy. In a recent development on the front, China and Malaysia have joined forces to explore opportunities in VPPs. Towards this, the two countries organised “China-Malaysia Virtual Power Plant Project Achievements Conference and China-Malaysia Virtual Power Plant Development Cloud Forum” through Shanghai Energy Technology Development (SETD), which is a subsidiary for China’s State Power Investment Corporation Limited (SPIC).  SPIC is among the five largest power generation groups.

Last year, SETD, united with universities both in China and Malaysia to come up with a report providing an insight into the potential for development of and cooperation prospect of VPP in the two countries. The report also has recommendations on their bilateral relationship on VPPs. The report takes note of the development of VVPs in Malaysia. The forum saw experts share views and recommendations about the status of development and trend of new energy and its storage in Malaysia, along with exchange of views on the development potential, technical research, construction and operation and business model of VPP.

In the conference, the two countries of China and Malaysia agreed to provide an impetus to green, low-carbon and smart energy transition. At the same time, they will also be working out solutions to address the challenge of climate change. In June last year, Shanxi Province revealed that China’s was ready for its first virtual power plant implementation plan at provincial level.

A few days later, China’s State Power Rixin Tech,  which manufactures and distributes electrical power equipment and had begun VPP business in 2020, revealed that its stock price hiked by 37% in a span of three consecutive days as a consequence of discussions about a new VPP project to be set up in California by Pacific Gas and Electric Company (PG&E) and Tesla.

Even though VPPs are still in a stage of infancy, several reports agree that they are the future. One report goes on to state that the VPP market will rise at a CAGR of 16.8% by through 2030.