On January 14, State Grid Jiangsu Electric Power Company announced the launch of construction for China’s first million-kilowatt virtual power plant, located in Jiangsu Province. The project aims to integrate a large number of high-power smart household appliances into a cloud-based virtual energy pool, enabling flexible energy management.
Source: Xinhua News Agency
On January 14, State Grid Jiangsu Electric Power Company announced the launch of construction for China’s first million-kilowatt virtual power plant, located in Jiangsu Province. The project aims to integrate a large number of high-power smart household appliances into a cloud-based virtual energy pool, enabling flexible energy management. This initiative is designed to enhance the efficiency of renewable energy use, supporting China’s broader efforts to transition to a green, low-carbon economy.
The virtual power plant will rely on Jiangsu's new electric load management system, which uses technologies such as big data, the Internet of Things (IoT), and artificial intelligence. By aggregating appliances like air conditioners and water heaters, the system can adjust energy usage, especially during peak demand periods in the summer and winter. The goal is to optimize power consumption when renewable energy generation is either in surplus or shortage.
“When power shortages are predicted, energy providers can send notifications to residents through an app, encouraging them to adjust their high-power appliances—like setting air conditioners to a higher temperature or postponing the use of water heaters. In return, participants will receive rewards in the form of reduced electricity bills,” said Duan Meimei, director of the load management center at State Grid Jiangsu Electric Power Company. This initiative is expected to improve the use of renewable energy resources.
Virtual power plants are set to play a critical role in the future of electricity networks, supporting the transition to renewable energy and helping to achieve carbon neutrality goals. In Jiangsu alone, there are over 7 million smart appliances connected to the grid, providing a potential adjustable load capacity of 9 million kilowatts. The development of this project comes as Jiangsu has made significant progress in expanding its renewable energy infrastructure. By the end of October 2024, the province's renewable energy capacity surpassed that of coal-fired power plants, making renewables the largest source of power in the region.