The world is undergoing a transition in the energy industry from the traditional fossil-fuel based baseload power generation to a decentralized, distributed, and cleaner format due to approaching or already established grid parity of many technologies, such as solar power, offshore wind power, electric vehicles and the like. However, conventional utilities are accustomed to a centralized control of its energy assets. With solar rooftops cropping up at homes and EV charging points being installed at various points, the grid becomes vulnerable to voltage fluctuations and grid outages. Utilities and grid operators are faced with the challenge of controlling this increasing number of distributed energy resources (DERs).
Here, the two concepts discussed help in making the grid resilient to an inevitable renewable energy future and at the same time ensure that customers get reliable, cheap, and clean energy. The two concepts being covered in this report are Microgrids and Virtual Power Plants (VPPs). As microgrids have become a commercially feasible solution, VPP is still in the demonstration stages largely. Nevertheless, it is important to discuss the key innovations in these areas and that is the focus of this report.