Company Profile

VPP is an innovative power & technology company with over 15 years of experience in power and heat supply and power plant development. During these years, our dynamic team of engineers, IT experts, power plant operation and electricity trading professionals has realized several on-site technology developments (1-15 MW) and created a unique Virtual Power Plant Solution (VPPS) in 2011.

Thanks to this successful business and technology innovation, a unique Virtual Power Plant Solution was born, which offered first virtual power plant services in Hungary for smaller, decentralized power plants found themselves without a market after the subsidized feed-in tariff system (KÁT) was discontinued. As of November 2011, VPP’s virtual power plant has been an active player on the domestic energy market and continuously provides services for system-level regulation. The production management procedure of our VPPS has been under patent protection since 2015.

Since its inception, VPP has acquired a broad range of international experience and offers solutions not only geared towards the Hungarian market, but its recent virtual power plant developments reflect international trends and safety standards.

VPP’s long-term strategy is not only to actively contribute to the expansion of cogeneration and renewable energy technologies, but also to make these systems more flexible and more secure. We want to promote the use of exciting innovations like smart grid technology that harmonize power generation and consumption, making power generation more predictable and consumption more conscious. All this adds up to cheaper and more efficient energy – and a cleaner world.

 

Milestones in VPP’s history

15 years of experience in the energy sector

VPP Magyarország Zrt. was created in 2002 as a result of the demerger of the Greenergy Company Group. Under the leadership of its founder and CEO, Gábor Dicső, Greenergy built up and operated an energy portfolio of 60 MW which included 16 CHP/CCHP small-scale power plants, 2 biomass heating plants and a 120 MW windfarm under development. During the course of its operation, Greenergy had 30 million EUR in consolidated capital and had used 50 million EUR in investment loans. 

Starting business and intensive portfolio growth

VPP began its independent activities in the summer of 2011 by launching its Virtual Power Plant Solution on the Hungarian market. At first, VPP operated the 45 MW power plant portfolio of the Greenergy Company Group, then expanded by connecting additional CHP/CCHP power plants to the virtual power plant. Thanks to its successful business model and timeliness, 30% of gas-fueled small-scale power plants joined VPP’s virtual power plant, making VPP the largest player on the domestic market of virtual power plants by 2013.

Key partner of TSO in acillary services

In October 2011, VPP was the first virtual power plant to be successfully accredited for secondary regulation in Hungary and has been providing ancillary services for TSO (MAVIR) on a continuous basis since 8 November 2011.

Between 2012 and 2014, VPP delivered a highly reliable performance and successfully stabilized its dominant position in the system-level regulation sector, becoming the second largest player with a 20% market share. 

New developments to increase costumer satisfaction

In February 2013, VPP launched its Online Client Portal service for VPP Members. The new client information system was expanded to include another two modules as of May 2013. 

Patent protection

The VPP Magyarország Zrt. obtained patent protection for "Distributed power generation system, control, means and method for controlling the power generation of the system". The patent protection is valid for the territory of United States of America as of October 2015, as well as for the countries of the European Union as of September 2016, with retrospective effect dated back to 8th May 2012. 

Acquisition of CHP small-scale power plant in Újpalota (Hungary)

In December 2015, VPP signed a contract with CHP Erőmű Kft. for the acquisition of the combined heat and power plant located in Újpalota, Budapest, a small-scale power plant that has been a key partner of VPP’s virtual power plant since the latter’s founding. VPP took 100% ownership of the plant as of 1 April 2016, and the acquisition was realized from the VPP Group’s capital.

 

Activities

VPP offers energy project development, full circle energy supply and virtual power plant services.
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Business Model

VPP's business model is based on the virtual power plant long-term sustainable benefits for both small plants and large energy consumers.
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