Building virtual power plants: incentives and automation for demand-side flexibility
Achieving global net zero emissions targets necessitates the rapid deployment and integration of variable renewable energy onto the grid.
Abstract
Achieving global net zero emissions targets necessitates the rapid deployment and integration of variable renewable energy onto the grid, making the task of balancing the energy system increasingly challenging as patterns of generation and demand are not aligned over the hours of the day. Demand-side management has the potential to offer at least a partial solution to the intermittency challenge, as consumers often use energy services that are time-flexible. The usage of power-intensive household appliances such as air conditioners, washing machines, dryers and immersion heaters could potentially be delayed by short time intervals if users are adequately incentivised to do so. Simple and innovative IoT technologies such as smart thermostats and smart switches are now available to automate demand-side response.
This paper is part of the Private Enterprise Development in Low-Income Countries (PEDL) programme.
Citation
Khanna S and others. 鈥楤uilding virtual power plants: incentives and automation for demand-side flexibility鈥� PEDL Working Paper 2025