Hitachi Energy to enhance Zhejiang Energy Group’s VPP services

Hitachi Energy has partnered with Zhejiang Energy Group to deliver advanced digital solutions and advisory services aimed at optimising the smart settlement business of the group's virtual power plant (VPP) in Zhejiang Province, China.

The collaboration will integrate the VPP platform seamlessly into existing power system operations and enable full participation in local electricity market transactions.

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In 2024, Zhejiang introduced policies encouraging VPPs' involvement in ancillary service markets through both policy incentives and market mechanisms.

In this strategic move, Hitachi Energy has provided consultancy to assist Zhejiang Energy Group in launching its inaugural VPP project.

The project integrates diverse resources offering auxiliary grid services, which improve regulatory capabilities and balance supply-demand dynamics.

Customised algorithm development for trading strategies and settlement processes will be part of Hitachi's contribution alongside necessary hardware support.

The implementation of these upgrades supports more effective resource use within Zhejiang Province, known for high industrial activity and where electricity consumption surpassed 678bn kilowatt hours (kWh) in 2024 - an annual increase close to 9.5%.

The VPP platform provides auxiliary services including peak load adjustment and frequency response through intelligent interactions between power supply networks, loads and storage systems.

Currently connecting more than 200 user-side resources within the province, the VPP aggregates multiple forms of energy, including storage capacities and adjustable loads.

Digital coordinated control technologies deployed offer real-time responses enhancing dispatch efficiency – essential for maintaining equilibrium between supply-demand pressures whilst ensuring stable grid operation.

It also plays a vital role as a stabiliser against intermittent renewable energy generation fluctuations, thus improving renewable resource utilisation efficiency across Zhejiang.

"Hitachi Energy to enhance Zhejiang Energy Group’s VPP services" was originally created and published by Power Technology, a GlobalData owned brand.

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