Despite the critical role of renewable energy sources in achieving a sustainable future, they pose significant challenges due to their dependence on weather conditions. Unlike thermal power plants fueled by combustion, solar and wind energy production fluctuates based on sunlight and wind availability.
During times of insufficient sunlight or wind, renewable sources often fall short of meeting market demands. Conversely, during sunny periods, solar power can exceed demand, leading to a surplus of low-cost green energy that can even drive prices below zero. Consequently, this excess energy often remains untapped, as noted by the World Economic Forum.
One promising solution to address these limitations is the development of decentralized battery networks, known as “virtual power plants.” These systems leverage artificial intelligence to manage the production, storage, and distribution of electricity from various sources. By integrating numerous home batteries, electric vehicles, and heat pumps into a large, decentralized network, virtual power plants can offer capacity comparable to multiple nuclear power plants, combined with exceptional flexibility.
Virtual power plants help to balance the grid by storing excess electricity during times of high production and redistributing it when demand increases. This approach mitigates peak loads, smooths out production and demand, and enhances grid stability. Furthermore, smart integration into the energy market allows households to benefit from substantial savings and potential additional income.
Electric vehicles (EVs) also play a critical role as mobile batteries. For instance, a typical EV battery with a capacity of 62 kWh can store the equivalent of a week’s worth of electricity for a single-family home. When managed through smart energy systems, EVs can be charged during periods of low electricity prices or when solar panels generate surplus energy, and discharged back into the grid when prices rise due to reduced renewable energy generation.
