PJM Interconnection okays first virtual power plant in its wholesale market

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Distributed energy resource (DER) control and aggregation platform provider Sunverge and Delmarva Power, an Exelon Company serving customers in Delaware and Maryland, entered into an agreement with PJM Interconnection (PJM) to explore how a new virtual power plant (VPP) pilot project can participate in the region’s wholesale market for ancillary services.

The Elk Neck Battery Storage Pilot Program is a VPP with a planned capacity of 0.55 MW / 2.2 MWh and is anticipated to be fully operational by Q1 2022. It has received the necessary regulatory approvals from the Maryland Public Service Commission and will be the first battery energy storage residential VPP to participate in PJM’s wholesale market, providing benefits to both consumers and the grid.

“The local energy grid is an incredible interactive platform connecting our customers and communities to the energy services and clean energy choices they want,” said Doug Mokoid, Delmarva Power region president. “This agreement with PJM and Sunverge is a pivotal step in demonstrating just how dynamic the grid has become and our evolving role as a local energy company in integrating new technologies that directly benefit our customers and the broader regional energy system.”

“The Elk Neck Battery Storage Pilot Project will allow aggregated DER to test the markets under real-world market conditions, providing lessons for PJM and all its stakeholders in alignment with the spirit of FERC Order 2222,” said Eric Hsia, Senior Manager of Applied Innovation at PJM.

The Elk Neck pilot project will be one of the first energy projects that demonstrates the grid of the future including distributed energy resources operating and competing within federally regulated organized markets, providing an invaluable foundation for the market participation of distributed energy resources going forward.

The Sunverge real time DER control and aggregation platform provides dynamic multi-objective optimization of services on both sides of the meter. Together with the Sunverge Infinity edge controller, the Sunverge VPP platform provides intelligent dynamic near real-time control over decentralized energy resources that is efficient, reliable, and responsive to utilities and their customers.

“The Elk Neck VPP project partnership between Sunverge, Delmarva Power and PJM is an innovative approach that will demonstrate the value of Multi-service VPP’s, not only for consumers and utilities, but for the energy market more broadly,” said Martin Milani, CEO of Sunverge. “By participating in PJM’s ancillary wholesale market, Elk Neck project will demonstrate the path forward for Multi-service VPP’s participating in wholesale ancillary markets under FERC Order 2222 and add yet another multifaceted value stream for DERs. The Sunverge platform’s unique ability to simultaneously run multiple services with different priorities allows optimization for different services dynamically, under different grid and market conditions.”

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