PGE VPP :: Smart Battery

Smart battery image by ChatGPT

Portland General Electric (PGE) started their Virtual Power Plant (VPP) pilot (called SmartBattery) in the fall of 2020. We were among the first to sign up for the program. This 5-year pilot program is coming to an end soon, so what happens next?

The pilot (unsurprisingly) hit a few start-up snags in the beginning. However, that is the point of a pilot (find out what you don't know on a small scale, learn, adapt, then deploy on a larger scale). The good news is that PGE learned lessons and made changes. In one case, I know they made a change specifically based on my data, as evidenced by an email they sent specifically to me stating that they were improving support for "super users" based on my system specs and usage. 

They have also made changes to the method to determine participant payment amounts. Initially, PGE used a system similar to the Smart Thermostat program. You were paid $20 for each month that you were enrolled, regardless of participation. This has obvious issues: someone who participated in five events in a month would be paid the same amount as someone who participated in only one, and this does not account for the level of participation in each event (during an event, did you send 1 kWh or 50 kWh?). Obviously, the incentive needed to align with the value provided, and PGE changed the participation payments accordingly.

What's Next?

This was a 5-year pilot, and it is coming to an end in September. Approximately 450 households are participating, and we want to know what's going to happen when this pilot ends. The good news is that PGE wants to continue the program and move it from pilot phase to a full-fledged program. 

The proposal for the new SmartBattery program must be approved by state regulators and CUB. I don't expect anyone to oppose this program; it's a win-win for the utility and participants: it helps stabilize the grid, and reduces CO2 emissions, while paying participants.

Benefits of VPPs

VPPs integrate distributed energy resources like solar panels, batteries, and demand response systems into a cohesive network. They optimize energy distribution, enhancing grid reliability and efficiency. By aggregating small-scale energy sources, VPPs provide utilities with flexible, cost-effective alternatives to peaker plants, reducing reliance on fossil fuels. 

VPPs enable real-time energy management, balancing supply and demand to prevent outages during peak demand hours. VPPs also lower energy costs for consumers by prioritizing cheaper, renewable sources and reducing transmission losses, rather than firing up the most expensive and dirtiest sources available. 

VPPs also enhance energy resilience, allowing communities to maintain power during outages by leveraging localized resources. They are the first step to the internet of energy, supporting grid modernization, and integrating smart technologies for better forecasting and control. Additionally, VPPs create economic opportunities by enabling participants to earn incentives for sharing energy. As renewable energy adoption grows, VPPs will play a critical role in building sustainable, decentralized energy systems, ensuring affordability, reliability, and environmental benefits for all.