When Thomas Alva Edison (1847–1931) constructed one of the first power stations in Pearl Street, New York City, in 1882, he revolutionized the way people used energy. Once energy had to be produced where and when it was needed. But a power station separates the producer of energy from the consumer, using electricity as a go-between. This makes it possible to generate electricity in Detroit that will be used in California or to use cheap energy produced at quiet periods during the night to produce electricity for peak periods during the day. How do power plants actually work? Let's take a closer look!
Virtual power plant unit whose supposed to help manage energy distribution of a section or area that can be properly managed as well as the renewable energy used
A virtual power plant (VPP) is a system that integrates several types of power sources, (such as microCHP, wind-turbines, small hydro, photovoltaics, back-up gensets, batteries etc.) so as to give a reliable overall power supply. The sources are often a cluster of distributed generation systems, and are often orchestrated by a central authority.
In the competitive electricity markets, a virtual power plant acts as an arbitrageur by exercising arbitrage between diverse energy trading floors.
An example of a real-world virtual power plant is found on the Scottish Inner Hebrides island of Eigg