The Virtual Power Plant
Type of initiative
FCM Green Municipal Fund - Plans, Studies, Pilots
Sector
Energy
Project value$175,000
Project Type
Pilot Project
Sub Sector
Energy Management – Other
Grant amount$125,000
Program type
GMF
Municipality
City of Toronto, ON
Status
Fully Disbursed
Population
2,794,356
Project timeline
2004 - 2011
Project number
5420
Description
This economic/regulatory study is the first step towards creating a Virtual Power Plant (VPP) that generates electricity from a system that combines multiple “micro power” renewable energy sources with “mega power” sources through a distributed network. The VPP would offer a range of benefits not currently realised including congestion relief; transmission cost and line-loss avoidance; and emissions credits and green premiums. It would benefit capital intense power generation (e.g., photovoltaic) over fuel consuming technology (e.g., cogeneration). Emission reductions from increased energy efficiency and displaced coal-generated electricity are anticipated. If the study of economic possibilities, available technology and required regulatory adjustments proves VPP financially viable, Toronto Hydro’s retail settlements software would be customized to permit the aggregation of hundreds of small-distributed generation facilities behind traditional retail metres.
Applicant
City of Toronto, ON