'Virtual Power Plant' ensures reliable power supply for summer peak

As part of efforts to prepare for peak summer electricity demand, Huang Wei, a marketing staff member from State Grid Jiaxing Power Supply Company, recently inspected the operation of a virtual power plant at Gem-Year Industrial Co Ltd in Jiashan county, Jiaxing city, Zhejiang province.

In August 2024, State Grid Jiaxing Power Supply Company commissioned Jiashan's first user-side 10 kilovolt grid-connected large-scale energy storage project. The facility includes a 4.995 MW (megawatt) / 10.044 MWh (megawatt hour) energy storage station, operating on a "two-charge, two-discharge" schedule: charging during off-peak hours (00:00–07:00 and 11:00–13:00) and discharging during peak hours (09:00–11:00 and 15:00–17:00). This load shifting strategy helps reduce electricity costs and improve overall energy efficiency for the enterprise.

"Since its launch, the energy storage system has been used entirely for on-site power needs. It is expected to save the company around 500,000 yuan ($69,377) annually in electricity costs," said Huang. Beyond cost savings, the station also supports grid stability by participating in regional load regulation.

The facility has been integrated with the Jiashan Comprehensive Energy Management Platform under the Jiaxing's Virtual Power Plant (VPP) Management Platform. This system allows operators to monitor real-time data on power generation and consumption from solar, storage and EV charging systems across the county. By aggregating these decentralized and controllable energy resources, the platform effectively forms a virtual "power plant" capable of flexible load adjustments in response to demand.

During last year's summer peak season, the VPP independently participated in demand response efforts, reducing load by an average of 3.7 MW and peaking at 4.7 MW. This significantly alleviated pressure on the local power grid. By the end of April 2025, the project has generated about 2.7 million yuan in economic benefits for the company through its peak shaving operations.