How to reduce balancing energy costs

For solar projects falling outside the scope of the subsidized feed-in tariff system and operating under the Green Premium model, the reduction of balancing energy costs is increasingly important in the short term. VPP's virtual power plant offers a variety of services that support the achievement of these business goals.

What makes balancing energy so important?

All non-subsidized renewable producers sell their electricity on the power exchange. Due to the obligation to produce highly accurate schedules and to pay a balancing energy fee, their profitability is highly sensitive to weather fluctuations and the uncertainties of product forecasts.

Non-subsidized renewable power plants face the following challenges:

  • 15-minute accuracy in scheduling instead of the daily schedule formerly applied

  • Zero tolerance for schedule deviations, instead of the formerly applied 50% limit

VPP's virtual power plant prepares solar plants for the challenges of the future. This is our real added value today!

VPP's virtual power plant aims to reduce the balancing energy costs of renewable power plants with the following services:

Balance group services

VPP's balance group is able to receive renewable energy producers. Thanks to a favorable legislative framework, we are permitted to operate a mixed balance group and provide balance group services for renewable power plants excluded from the feed-in tariff system.

VPP's balance group effectively contributes to the reduction of balancing energy costs of solar plants in the following ways:

  • Self-balancing within VPP's balance group via VPP’s virtual power plant control room

  • Portfolio effect due to mixed portfolio and self-balance of deviations from production forecasts

  • Day-ahead production forecasting with exceptionally accurate weather forecasting data

  • Use of self-learning technology in production forecast to improve accuracy

System integration of renewable producers

We all enjoy the environmental and financial benefits of the increasing share of renewable solar and wind production. However, large volumes of highly volatile electricity pose such challenges for the owners of renewable power plants and electricity grid operators that it is no longer possible to manage these issues without virtual power plants. To preserve the balance and the cost-efficiency of the electricity system, we have to find a solution for the system-level integration of wind and solar energy producers, and to ensure their participation on the ancillary services market.

Connecting renewable producers to ancillary services presents a challenging task for both virtual power plant integrators and regulatory authorities worldwide. VPP continuously develops its virtual power plant solution to be ready to launch system-level services as soon as the regulatory environment allows it.

Request a quote for your solar power plant!

To speed up the quotation process, you may fill out the following technical data sheet and send it to us.

We can provide an even more accurate quote if you attach a site plan and maps.

Download data sheet
(in Hungarian, PDF, 3.43 MB)


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