虚拟电厂和能源正义-Virtual Power Plants and Energy Justice

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ContractNo.DE-AC36-08GO28308

VirtualPowerPlantsandEnergyJustice

BrittanySpeetles,EricLockhart,andAdamWarren

NationalRenewableEnergyLaboratory

NRELisanationallaboratoryoftheU.S.DepartmentofEnergyOfficeofEnergyEfficiency&RenewableEnergy

OperatedbytheAllianceforSustainableEnergy,LLC

TechnicalReport

NREL/TP-7A40-86607

October2023

NationalRenewableEnergyLaboratory15013DenverWestParkway

Golden,CO80401

303-275-3000•

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ContractNo.DE-AC36-08GO28308

VirtualPowerPlantsandEnergyJustice

BrittanySpeetles,EricLockhart,andAdamWarren

NationalRenewableEnergyLaboratory

SuggestedCitation

Speetles,Brittany,EricLockhart,andAdamWarren.2023.VirtualPowerPlantsandEnergyJustice.Golden,CO:NationalRenewableEnergyLaboratory.NREL/TP-7A40-86607.

/docs/fy24osti/86607.pdf.

NRELisanationallaboratoryoftheU.S.DepartmentofEnergyOfficeofEnergyEfficiency&RenewableEnergy

OperatedbytheAllianceforSustainableEnergy,LLC

TechnicalReport

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NOTICE

ThisworkwasauthoredbytheNationalRenewableEnergyLaboratory,operatedbyAllianceforSustainableEnergy,LLC,fortheU.S.DepartmentofEnergy(DOE)underContractNo.DE-AC36-08GO28308.ThisworkwassupportedbytheLaboratoryDirectedResearchandDevelopment(LDRD)ProgramatNREL.TheviewsexpressedhereindonotnecessarilyrepresenttheviewsoftheDOEortheU.S.Government.

ThisreportisavailableatnocostfromtheNationalRenewable

EnergyLaboratory(NREL)at

/publications.

U.S.DepartmentofEnergy(DOE)reportsproducedafter1991

andagrowingnumberofpre-1991documentsareavailable

freevia

www.OSTI.gov.

CoverPhotosbyDennisSchroeder:(clockwise,lefttoright)NREL51934,NREL45897,NREL42160,NREL45891,NREL48097,NREL46526.

NRELprintsonpaperthatcontainsrecycledcontent.

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Acknowledgments

TheauthorswouldliketothanktheNationalRenewableEnergyLaboratory’sLaboratory

DirectedResearchDevelopmentseedprogram,whichfundedthisresearch.Additionally,Bai

CuiandAhmedZamzamcontributedtotheinitialthinkingabouttechnicalvirtualpowerplant

concepts.RoderickJacksoncontributedtoourthinkingaboutenergyjusticeconcepts,especiallylinkingrootcausestocurrentchallenges.NateBlair,JenniferDaw,MadelineGeocaris,Joyce

McLaren,MikeMeshek,DanOlis,GianPorro,MarkRuth,DaniSalyer,andWilliamTokashprovidedvaluableinsightsduringtheeditingandreviewprocess.ThisworkwasinspiredbypubliccommentsmadebytheDirectoroftheDepartmentofEnergy’sLoanProgramsOffice,JigarShah,andhisleadershipteam.

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ListofAcronyms

ALA

AmericanLungAssociation

BIPOC

Black,Indigenous,andPeopleofColor

CEJST

ClimateandEconomicJusticeScreeningTool

DERs

distributedenergyresources

DERMS

DERmanagementsystem

DOE

USDepartmentofEnergy

EJ

energyjustice

EJScreen

EPAEnvironmentalJusticeScreeningTool

EV

electricvehicle

FERC

FederalEnergyRegulatoryCommission

FFR

fastfrequencyresponse

IBEW

InternationalBrotherhoodofElectricalWorkers

IRA

InflationReductionAct

ISO

IndependentSystemOperator

IT

Informationtechnology

JISEA

JointInstituteforStrategicEnergyAnalysis

kW

kilowatts

kWh

kilowatt-hours

LPO

LoanProgramsOffice

MW

megawatts

MWh

megawatt-hours

NECA

NationalElectricalContractorsAssociation

NREL

NationalRenewableEnergyLaboratory

PHEV

plug-inhybridelectricvehicle

PV

photovoltaics

REV

ReformingtheEnergyVision

SCE

SouthernCaliforniaEdison

V2G

vehicle-to-grid

VPP

virtualpowerplant

v

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ExecutiveSummary

TheFederalEnergyRegulatoryCommission’s(FERC)Order2222,issuedinSeptember2020,allowsaggregateddistributedenergyresources(DERs)toparticipateinwholesaleenergy

marketsasasingleentity,oftenreferredtoasavirtualpowerplant(VPP).VPPscontrol

dispatchable,aggregatedDERs(includingflexible,responsiveloads),contributetomultipleelectricitymarkettypes,andprovidevariousgridservices[1].VPPsarenotlimitedtoany

specificDERtechnologies;thescopeofVPPprojectscanvarybasedongeography,specificprogramdrivers,andotherprogrameligibilityrequirements.CommontechnologiesinVPPprojectsincludehouseholddevices,electricvehicles,solargeneration,storage,andhotwaterheaters.

TheabilitytoflexiblycontrolandaggregateDERsthroughscalingVPPdeploymentcouldavoidsignificantgridinfrastructureinvestments,earnrevenuebydeliveringgridservices,lowerpeakdemand,acceleratetheadoptionofrenewableenergy,reduceelectricitybills,andprovidelocalresilienceatalowercosttocustomers.Ifdevelopedandoperatedwithenvironmentalandenergyjusticeinmind,VPPsalsohavethepotentialtoreducegreenhousegasemissions,improve

indoorandoutdoorairquality,supportworkforceandeconomicdevelopment,andaddresschallengesfacedbyunderservedcommunities

1

,suchasenergyburden[2],[3],[4].

ThetopicofVPPshasbecomemorerelevantbecauseDERadoptionisexperiencingrapid

growthintheUS,andpeakelectricitydemandisalsoontherise[2].Thispaperexploresthe

potentialforVPPstoprovideenergysystemandsocietalbenefitsthroughanenergyjustice(EJ)lens.Energyjusticereferstothegoalofachievingequitableoutcomesbothsociallyand

economicallyintheenergysystemtransition,whilealsoremediatingsocial,economic,and

healthburdensonthosehistoricallyharmedbytheenergysystem[5].VPPshavethepotentialtosupportunderservedcommunitiesinachievingjusttransitiongoalsandoutcomes,butcost-

related,socioeconomic,andhistoricalbarrierscanmakeVPPadoptionchallengingin

underservedcommunitycontexts.Thesechallengesareaddressedthroughoutthepaper,andweincludearepresentationoftheirhierarchalrelevancetothefourtenetsofenergyjusticeinTable2.

Thekeyquestionsguidingourresearchinclude:WhatareVPPusecases,valuestreams,and

businessmodels?HowisenergyjusticerelatedtoVPPs,andhowcanVPPsbedesignedfor

underservedcommunityparticipationandbenefit?WhatprogramincentivesandotherstrategiescanimproveopportunitiesforunderservedcommunitiestoaccessandbenefitfromVPPs?

1Throughoutthepaper,weusetheterm“underservedcommunities”torefertocommunitiesthathavelimited

accesstoresourcesandopportunities.ThisdisproportionatelyreferstocommunitieswithhighBlack,Indigenous,andPeopleofColor(BIPOC)populations,low-incomepopulations,populationsthatfacepersistentlevelsof

poverty,andothervulnerable,historicallydisenfranchised,orpersistentlymarginalizedgroups.Inourliteraturereview,weusetheterms“low-income”and“disadvantaged”wheretheyareappropriatetodescribeaparticularstudy’smethods.

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Thediscussionsinthispaperfocusonfourtenetsofenergyjustice:proceduraljustice,distributivejustice,recognitionaljustice,andrestorativejustice.

.Proceduraljusticereferstoparticipationinfair,transparentdecision-makingprocesses.

.Distributivejusticereferstoequitableallocationofoutcomesrelatedtoenergyinvestments.

.Recognitionaljusticereferstotakingacommunity’sneedsintoconsiderationandincludingvulnerable,remote,orunderservedcommunitiesinenergytransitionprograms.

.Restorativejusticereferstoremediationandcommunitydevelopmentefforts.

ThesefourtenetsoverlapandtheirrelevanceorimportancetoVPPsvarieswithwhichusecasesareprioritized,whichDERsareincluded,andotherbusinessdecisions,suchashowaVPPis

financed.Table1inthispaperoffersamappingofenergyjusticetenetstovariousVPPusecases[6].Usingthefourtenetsofenergyjusticetoframeourdiscussions,we:

.ProvidebackgroundinformationonthecurrentVPPlandscape,andhistoricalcontextofitsevolutionwithinatransactiveenergysystem,

.ProvideareviewofthecurrentVPPmarketplace,valuechain,andrelationshipswiththebroaderrenewableenergyeconomyandenergyjustice(see

Figure1)

,

.EvaluateVPPusecasesintermsofenergysystemandsocialbenefitssuchasgridservicesprovision,economicdevelopment,andpublichealth,

.Discussbarrierstoadoptionintermsofcosts,socioeconomicbarriers,andhistoricalbarriers,anddiscusshowthesebarriersmightbeovercomeinunderservedcommunities,

.AnalyzeandcatalogthepotentialforVPPstoadvanceandalignEJandeconomicgoals,and

.ProvidebackgroundinformationonhowproposedandexistingVPPprogramsandprojectsrelatetousecasesandVPPadoptioninunderservedcommunities,contextonhowprogramsthatprioritizeEJgoalshavebeendesigned,andopportunitiesonhowfutureprogramdesigncouldbeimprovedtobemoresupportiveofEJgoals.

IntheIntroductionsectionofthispaper,webrieflydiscussthescope,methodology,and

limitationsofthepaper,anddifferentiateVPPsfromsixcloselyrelatedconcepts:(1)distributed

energyresourcemanagementsystems,(2)distributedenergyresources,(3)non-wiresalternatives,(4)demandresponse,(5)microgrids,and(6)localelectricityexchange.

IntheBackgroundsection,weprovideanoverviewofvariousVPPoperatorstructures/models

anddiscusspolicyincentivesandimpactsfromtheInflationReductionActof2022(IRA)that

havelaidthefoundationforVPPmarketgrowth,includingelectrificationrebatesandothers.Wementionimpactsofthe2020Justice40ExecutiveOrderwhichrequiresthat40%offederal

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climateinvestmentsgotowardsunderservedcommunities.AndwebrieflycovertwoFERC

regulationspassedin2018and2020thatallowVPPstocompetewithconventionalresourcesinwholesaleelectricitymarkets,whichhasconcentratedthecreationofVPPprogramsand

incentivesinstateswithwholesaleelectricitymarkets.

Sections

3

and

4

analyzeVPPusecasesthroughanEJlensandadoptioninunderserved

communities.Toformulatetheseanalyses,weconductedaliteraturereviewontherelationshipbetweenemergingtechnologiesandengagementinunderservedcommunities,discussedin

Section

2.3.

Wethenlistedanddescribedcommonchallengesinunderservedcommunitiesandnotedunderlyingcausesforeachchallenge.ToclearlyillustratehowintroductionofaVPP

couldimpactacommunitycontendingwiththesechallenges,wepredictedanddescribedimpactsandcitedexamples.WenotethatthisapproachcouldbeusedtoapplyanEJlensinanalyzing

otheremergingtechnologieswithinandbeyondtheliteraturereview.

TounderstandhowVPPscreatevalue,wereviewedindustryreportsandanalyzedover40

currentandpastVPPprojectsandpilotprograms,focusingonexamplesintheUS.Several

industryreportswereparticularlyrelevantinguidingourunderstandingofthecurrentVPPspaceascapturedinSection

2

ofthispaper[1],[2],[3],[4],[6],[7].AdditionalliteratureandexamplesinformthediscussionofusecasesandbarrierstoVPPadoptioninSections

3

and

4.

Ourpaperconcludeswithadiscussionofpotentialavenuestocontinueexplorationofthistopic.

Thekeyfindingsofthispaperinclude:

.BenefitsofVPPs:VPPscanprovidegridservices(reducingcapitalrequirements,supportingresourceadequacy,frequencyresponse,peakshaving,voltageregulationandincreasing

systemresiliency),supporteconomicdevelopment(providinglocalresiliency,reducing

electricitybillsandsupportingworkforceandeconomicdevelopment),andimprovepublichealth(reducinggreenhousegasemissionsandreducingindoor/outdoorairandnoise

pollution).Formostoftheseusecases,thereareexamplesofinstanceswherepeoplehavequantifiedthisbenefitandmarketsinturnhavemonetizedthatbenefit.Forthoseusecasesthatarenotmonetizable,externalitiessuchpublichealthcostsandthesocialcostofcarboncreatecostsavingsthatcouldbemonetizedinthefuture.

.BarrierstoVPPAdoptioninUnderservedCommunities:UnderservedcommunitiesfacecommonbarrierstoVPPadoption.Wediscusscost-basedbarriers(lackofcapital,loan

challenges,lackofaffordablehomeownership,needforadditionalupgrades),socioeconomicbarriers(energylimitingbehavior,lackofflexibilitycapital),andhistoricalbarriers

(communitymistrust,knowledgebarriers,exposuretothefossilfueleconomyandpoor

indoor/outdoorairquality,naturaldisastervulnerability,anddisproportionatepoweroutageimpacts).Cost-basedbarrierscanbeaddressedthroughalternativefinancingmethods.

Socioeconomicandhistoricalbarriershavefewerexamplesofbeingovercomeinpracticesofar.

.EnergyJusticeandCleanEnergyGoals:ProgramsthatseektoadvancecleanenergyandEJgoalsmusthaveaprogramdesignbasedinEJgoals[8],[9],[10],[11].TherearelimitedexamplesofVPPsthatweredesignedwithanintentionalfocusonunderservedcommunityparticipationandbenefits.WepredictthatVPPsthatarespecificallygearedtoward

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underservedcommunitiescandifferfromgeneral-purposeVPPprojectsbecauseofatleasttwofactors:fundingavenuesandprojectdrivers.Fundingavenuesforprojectstargeting

underservedcommunitiescouldincludeadditionalsubsidyprogramssuchasloans,grants,bonds,leasingofdevices,andon-billfinancing.Additionally,whiletheprimarydriverofVPPprojectsoverallistoprovidegridservices,thedriversforVPPprojectdevelopmentinunderservedcommunitiesmayalsoincludefactorsthatmitigatehistoricalharms,suchas

reducingindoorandoutdoorairpollution.

ThispaperprovidesbackgroundinformationonhowproposedandexistingVPPprogramsandprojectsrelatetousecasesandVPPadoptioninunderservedcommunities,providescontexton

howprogramsthatprioritizeEJgoalshavebeendesigned,andsuggestshowfutureprogramdesigncouldbeimprovedtobemoresupportiveofEJgoals(by,forexample,including

communityengagementearlyonintheprojectdevelopmentprocess)[12].VPPscanachievegridservices,economicbenefits,andpublichealthbenefits.Ensuringthatthetenetsofjustice

areconsideredearlyonduringVPPdevelopmentisimportantforrealizingbenefitsforunderservedcommunities.

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TableofContents

ExecutiveSummary v

1Introduction 1

2Background 5

2.1CurrentVPPLandscape 5

2.2TheVPPProjectValueChain 6

2.3CleanEnergyTechnologiesandEnergyJustice 8

3VPPUseCases 9

3.1GridServices 11

3.1.1ReduceCapitalRequirements 12

3.1.2SupportResourceAdequacy 13

3.1.3FrequencyResponse 13

3.1.4PeakShaving 14

3.1.5VoltageRegulation 15

3.1.6IncreaseSystemResiliency 15

3.2EconomicDevelopment 16

3.2.1ProvideLocalResiliency 16

3.2.2ReduceElectricityBills 16

3.2.3SupportWorkforce&EconomicDevelopment 17

3.3PublicHealthBenefits 18

3.3.1ReduceGreenhouseGasEmissions 19

3.3.2ReduceNoise&Indoor/OutdoorAirPollution 20

3.4Summary 21

4VPPAdoptioninUnderservedCommunities 22

4.1Cost-BasedBarriers 22

4.1.1LackofCapital 23

4.1.2LoanChallenges 24

4.1.3LackofAffordableHomeOwnership 24

4.1.4NeedforAdditionalUpgrades 25

4.2SocioeconomicBarriers 26

4.2.1EnergyLimitingBehavior 26

4.2.2LackofFlexibilityCapital 26

4.3PotentialtoOvercomeHistoricalChallenges 27

4.3.1CommunityMistrust 27

4.3.2KnowledgeBarriers 28

4.3.3ExposuretotheFossilFuelEconomy&PoorIndoor/OutdoorAirQuality 29

4.3.4NaturalDisasterVulnerability&DisproportionatePowerOutageImpacts 29

4.4Summary 31

5FutureWork&Conclusion 32

6References 35

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ListofFigures

Figure1.OpportunitiesforStrengtheningEJRelationshipAlongtheVPPValueChain..........................32

ListofTables

Table1.UseCasesofVPPs 11

Table2:Challengesfacedbyunderservedcommunities 22

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1Introduction

Factorssuchasthesustaineddropinthepriceofrenewablesandenergystorage,changesin

energydemandpatterns,aginginfrastructure,therapidincreaseincommercialandresidentialDERuptake,andthedesiretoreducegreenhousegasemissionsaredrivingatransformationofthepowersystem[2],[13].Thistransformationiscreatingtheopportunitytoconsiderfactorssuchasenergyjusticeindesignandplanningprocessesalongsidesystemstabilityandcosts.

TheUSbulk-scaleelectricitygridlargelyoperatesbysendingelectricityfromlargegeneratorstosubstations,throughtransmissionlines,andeventuallythroughatransformertostep-down

voltagesothatelectricitycanbedeliveredwhenandwhereitisneeded.

2

However,interestinthe

gridedgeisgrowingthroughapplicationssuchassmartinverters,smartmeters,demand

responsemethods,andothertechnologiesthatareabletoactivelymanageloadand/orsell

electricitygeneratedbehindthemeterbacktothegrid(suchasattimesofhighpeakdemand).

Inrecentyears,interestinatransactiveenergysystem,whichrefersto“asystemofeconomic

andcontrolmechanismsthatallowsthedynamicbalanceofsupplyanddemandacrosstheentireelectricalinfrastructure,usingvalueasakeyoperationalparameter,”hasincreased[14].Suchasystemallowsfortheconversionfromelectricityend-useconsumersto“prosumers”,thosebothproducingandconsumingelectricity,throughbidirectionalelectricityflowthatsupportsthe

electricitygrid[15].

Onewayatransactiveenergysystemiscomingtofruitionisthroughvirtualpowerplants(VPPs).DefinitionsofVPPshavechangedovertime,andtheabsenceofastandardized

definitionforVPPshashistoricallylimitedcategorizationthatenablestheanalysisofVPPs[16].Before2010,definitionsofVPPswereassociatedwithtermssuchastransmissionsystem

operators,distributionsystemoperators,microgrids,combinedheatandpowerplants,andpowermarkets;after2015,theyweremorecommonlyassociatedwithtermssuchascloudcomputing,smartcities,water-energymanagement,internetofenergy,smartmakedecisions,artificial

intelligence,andvehicle-to-gridcharging[16].WedefineVPPsasaggregated,dispatchablegroupsofDERs(includingflexible,responsiveloads)thatareoverseenbyacentralized

controllertoparticipateinmultipleelectricitymarkettypesandprovidevariousgridservices

[1].

WedonotlimitthisdiscussionofVPPstoanyspecificDERtechnologiesoreconomicsectors.ThetechnologiesinVPPprojectscanvarybasedongeography,specificprogramdrivers,and

otherprogrameligibilityrequirements.CommontechnologiesinVPPprojectsincludehouseholddevices,electricvehicles,solargeneration,storage,andhotwaterheaters.Morethan150

existingVPPsinNorthAmericausebatterystoragetechnologies,andalmost200VPPsemploylow-entrycostsmartthermostats[7].Althoughsmartvehiclechargingisapartofmanycurrent

2“Electricityexplained:Howelectricityisdeliveredtoconsumers,”USEIA,2022,

/energyexplained/electricity/delivery-to-consumers.php

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VPPprojects,vehicle-to-gridintegrationcouldpresentanascentandhigh-potentialmarketthathasnotyetparticipatedintheVPPindustryoutsideofpilotprograms[7].

AVPPisdistinctfromsixcloselyrelatedconcepts,whichare:

.DistributedEnergyResourceManagementSystem(DERMS):ADERMSrefersto

hardwareandsoftwarethatcanaggregate,monitor,controlandforecast/predictDERsources[1].AcorecomponentofaVPPisaDERMS,butaVPPinvolvesmorecapabilities,suchasmarketparticipation,thatarenotincludedintheDERMSdefinition[1].Usecasesand

stakeholderinvolvementalsodifferslightlybetweenthetwoconcepts;whileVPPsareusedbyaggregators,utilities,andotherstakeholderstosatisfymultiplegridservices,DERMSareoftenmanagedbydistributionnetworksystemoperators,andareusuallyusedtosupportandexpandDERintegration.

.DistributedEnergyResource(DERs):DERsrefertosmallresponsiveload,generationorstorageassetsthatareoftenconnectedtothelower-voltagedistributiongridorbehind-the-

meter[17].Responsiveload(ordemandflexibility)DERsincludeflexible,controllable

resourcessuchassmartthermostatsandsmartwaterheaters[2].GenerationDERsinclude

rooftopsolarPVsystemsorresidentialorcommercialdieselbackuppowergenerators.

StorageDERsincludehomestoragesystemsandEVbatteries.EventhoughVPPsaremadeupofagroupofDERs,thetwoaredistinctfromoneanotherfromanoperational

perspective.First,aVPPusesaDERMStocontrolDERscollectively.FERCOrder2222

allowsVPPstoparticipateinwholesalemarkets,whereasDERsareusuallynotabletodoso,whichlimitsthegridservicesthattheycanprovidetoretailonly.Theabilitytobe

compensatedforgridservices,whichprovidedistributionaljusticebenefitsbyimproving

electricitygridstability,reducingcosts,andavoidingtraditionalinfrastructureupgrades,isakeyareathatseparatesVPPsandDERMSfromindividualDERsfromagridoperator’s

perspective(gridservicesarediscussedinmoredetailinSection

3.1)

[18].

.Non-WiresAlternatives:Non-wiresalternativesrefertoinvestmentsintheelectricsystemthatarespecificallymeanttoavoidtheneedforadditionaltransmissionordistribution

investmentsorupgrades.

3

Thus,althoughaVPPcanactasatypeofnon-wiresalternative,thetwotermsarenotinterchangeablebecausenon-wiresalternativescanalsorefertoenergyefficiencystandards,microgrids,combinedheatandpower,ordemandresponse,among

otherthings.Moreover,ensuringthatVPPscanoperatesuccessfullyandprovideincreasedstabilitytothegridmightalsorequiresignificantgridinvestmenttoallowbackflowintothegrid.ThisisdiscussedinmoredetailinSection

3.1.1.

.DemandResponse:Demandresponsereferstoaformofincreasedcustomerinteraction

withtheelectricsystemthroughashiftinelectricityuseduringpeakdemandperiods.Often,thesebehavioralchangesareincentivizedthroughtime-of-useratesorotherfinancial

3“WhatisanNWA?”NationalGrid,

/Business-Partners/Non-Wires-

Alternatives/What-is-an-NWA.

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returns.

4

VPPsarerelatedtodemandresponsebecausemanyexistingprogramsare

specificallymeanttodeferpowerduringpeakdemand.VPPscanactasaformofdemand

responseandleveragedemandresponseprogramdesigns.Forexample,VPPprojectsthat

includesolarandenergystoragewilloftenhavecustomerssignacontractwithathirdpartyorutilityallowingthemtodispatchtheirbatterytothegridduringcertainhoursofcertain

daysoftheyear(thedayswhenpeakdemandeventsaremostlikelytooccur),andcustomersarecompensatedforthis.Thisisslightlydifferentthanwhatistraditionallythoughtofas

demandresponse,whichincentivizescustomerstomanuallychangetheirbehaviorsand

movedemandaroundthroughstrategiessuchastime-of-usepricingorcriticalpeakpricingbutdoesnotusuallyrequiredispatchabledevicesthatcanbecalledonbyautilityormarketinterfaceinrealtime.Fromasoftwareperspective,ademandresponseprogramdoesnot

requirecustomer-sidedevicestobeaggregatedviaaDERMS,whereasthisisakey

characteristicofaVPP.VPPscanalsointeractwithmarketinterfacesandgenerallyprovideabroadscopeofgridstabilitybenefitsbeyondpeakshavingthatmaynotbeencompassedinthedefinitionofdemandresponse.

.Microgrids:AmicrogridreferstoaninterconnectedgroupofDERsandloadsthatcanactasasingleentityandinteractwiththeelectricitygridorformaseparategridin“islanded

mode”.

5

Microgridsareself-containedsystems,oftenincludeastoragecomponent,andarecommonlydeployedinsettingswhereresilienceisapriority(suchasatafacilitythat

requiresreliablepowerintheeventofagridoutage).Theyareinterconnectedinonecentralplaceandarepredominantlyfocusedonsatisfyingthesupplyneedsofend-users,asopposedtobeingdispersedgeographicallysellingelectricityinawholesalemarket(asisoftenthe

casewithVPPs).VPPsarenottypicallydesignedtobeislandableanddonotprioritizeprovidingresiliencebenefitstoparticipatingendusers.

.LocalElectricityExchange:Theterm“localelectricityexchange”iscommonlyusedto

describeamicrogridandreferstoascenariowhereinpeoplebothgenerateandconsumetheirownelectricityandcansellexcessenergytothegridortootherlocalindividuals[19].

UnlikeaVPP,whichfocusesoncentralizedcontrolandoptimizationofDERs,alocal

electricityexchangereferstoadecentralized,community-basedsystemofbidirectional

electricityexchange.Oneexampleoflocalelectricityexchangeisablockchainpeertopeernetworkforelectricitytrading[19].

EmergingresearchfocusesonhowunderservedcommunitiesareimpactedbytheintroductionofnewtechnologiessuchasVPPs.AtthefederallevelintheUnitedStates,ther