AGL Energy plans ‘world’s largest virtual power plant’
Australia’s AGL Energy has launched what it calls the world's largest "virtual power plant", a network that will link 1,000 households and businesses with rooftop solar and batteries which can be centrally controlled. The AUD$20m (US$15m) project in the South Australian city of Adelaide involves the installation of solar power storage batteries which have software that allows power flows into the grid to be operated centrally, helping stabilise the grid at times of high demand. The scheme will take advantage of declining battery installation costs and allow the storage of electricity produced from household solar systems for use later in the day at peak demand times.

At a time of controversy over the reliability of renewable energy at times of peak demand in South Australia, plans have been outlined to connect renewable energy systems in Adelaide which it is hoped will cope with future surges in electricity demand.

Energy company AGL on Friday said it planned to connect as many as 1000 batteries linked with solar panel systems in Adelaide, which it is hoped will help meet demand peaks and avoid the need to source electricity from local power stations, at an estimated cost of $20 million.

Wind farms have been blamed for recent electricity supply concerns in South Australia. Credit: Bloomberg

The initial roll-out will be limited to 150 sets, which will be "heavily subsidised", the state government said, but would still cost each household $3500. These units are to be installed by April 2017, with the full roll-out expected to be concluded by the end of 2017.

AGL claimed the system would be the "world's largest virtual power plant", able to supply as much as 5 megawatts of electricity at peak demand times when fully operational.