Upgrade R8 Digital Operator with Virtual Power Plant and start earning money!
Virtual Power Plant (VPP, also known as Demand Response) provides an opportunity for large electricity consumers to have a role in the operation of the electricity grid by reducing or increasing their electricity usage during peak periods and earn extra money from this.
R8 Digital Operator takes electricity peaks into consideration and thus minimizes the electricity consumption during the periods of the highest electricity prices. We work with anticipated peaks that are known for a reasonable time before. This way we can still offer energy efficiency and indoor climate comfort and thus support you in achieving ESG goals as well!
R8 Virtual Power Plant is the most advanced VPP service as it does not require any additional hardware installation or investment and is connected to the HVAC control via the R8 Digital Operator!
How does VPP work?
The electricity provider sends a request to the VPP service provider to reduce (or increase) electricity consumption for x MW (usually 1 MW is the minimum) at a certain time. For motivation they offer, let’s say 3 times more money*, than the regular electricity price. Our VPP service works with larger buildings in your portfolio, the building owner / occupier decides whether to participate and is so will “take” or “avoid” energy for the period notified by the energy grid and will receive a payment from the energy provider for this.
Unlike some other VPP service providers, R8tech has a very strong understanding that VPP cannot be offered without control over buildings’ HVAC systems (indoor climate and energy efficiency) management, especially in buildings with high occupancy rates where indoor climate is the top priority.
Firstly, sudden decreases or increases of electricity usage interfere with the required indoor climate and energy efficiency. There is some inertia in every building, but to achieve an efficient energy consumption level again, a building will normally use more electricity, than it would without the VPP action. As a result, the total energy consumption will also increase because of VPP. CO2 emissions – in most of cases will increase, but in some cases it can be reduced (e.g. if the action avoids turning on a coal or oil-fueled electricity station CO2 emissions can be reduced).
Secondly, indoor climate comfort is the most crucial KPI in most of buildings, it is not too easy to achieve at all (in most of cases there is even no tool to measure it – but R8tech can!). Uncontrolled VPP degrades indoor climate. In some cases, limited fluctuations in indoor climate are not too important (for example warehouses, cold stores, industry) but offices, hotels, malls – buildings with many people – need excellent indoor climate for health and wellbeing.
Based on our experience, financial profitability from energy savings is much higher than the potential revenue for VPP. However, VPP in combination with energy and indoor climate management can give some additional financial value. We are ready to provide it.
*The availability and financial profitability of VPP depends on the state of preparedness and market regulation, in the relevant country. In some countries there are clear financial benefits for VPP, in some countries not. Not all countries currently operate VPP.
Interested in additional information?
Please contact me!