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A virtual power plant (VPP) is a cloud-based distributed power plant that aggregates the capacities of distributed energy resources, including wind and solar power, for power generation.
In the same way that virtual meetings allow companies to gather people from different locations, remotely distributed solar panels, wind turbines, and batteries can harness energy and act as VPPs. It’s simply the orchestration of thousands of dispersed assets to manage the supply of electricity — power that can be redirected back to the grid and distributed to homes and businesses.
The telecom sector is a perfect case for a VPP.
Telecom operators and tower companies already have distributed, nationwide energy assets that could be aggregated, making you a perfect case for VPPs. This would enable your business to reduce its energy consumption as well as costs. And the timing is perfect, considering that network energy consumption is projected to increase by 150 to 170 percent by 2026, mainly driven by the rollout of 5G.
As of today, prior to the full rollout of 5G, energy cost amounts to 20 to 40 percent of telco’s operating expenditures (OPEX). These costs are also increasing, which is generating a clear need to find new solutions to keep energy costs down.
Energy storage is evolving fast. From being a safety measure, storing backup energy, via peak shaving applications, to Virtual Power Plants (VPP) enabling new revenue streams. But how does all this work? We explain what ...
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