Date of Graduation

Spring 5-18-2024

Document Type

Thesis

Degree Name

Master of Science in Environmental Management (MSEM)

College/School

College of Arts and Sciences

Department/Program

Environmental Management

First Advisor

Stephanie Siehr

Abstract

To achieve 60% renewable electricity generation by 2030 and 100% zero-carbon electricity by 2045, California must rapidly electrify and decarbonize all sectors while ensuring grid stability to avoid power outages. Virtual power plants (VPPs) are an emerging solution that can help increase the percentage of renewable energy on California’s electrical grid. This research examined how VPPs can advance decarbonization, grid stability, and energy equity in California. The report begins by clarifying the definitions and components of a VPP, finding the crucial interactions among distributed energy resources (DERs), management systems, and prosumers (energy consumers who both produce and consume electricity). Next, the research analyzed federal and state policies and regulations enabling VPP growth, including FERC 841 and FERC 2222, which created a financial incentive for VPP and California’s resource adequacy (RA) program, designed to ensure balanced energy supply and demand. Then, the research examined VPP benefits for the environment, for the grid, and to energy prosumers. The inclusion of DERs that are often clean technologies, brings more renewable generation onto the grid, helping achieve decarbonization and air pollution reduction. VPP generates flexible loads for resource adequacy and helps lower and shift peak demand in an affordable way to maintain system reliability and relief for transmission and distribution infrastructure. Prosumers who enroll in a VPP are contributing their DERs to lower chances of blackouts while also reducing the overall cost of electricity and DERs. Lastly, this research evaluated three case studies and found that, by default, VPPs stabilize the grid and decarbonize energy systems but do not inherently contribute to energy justice beyond some cost-savings. To maximize VPP benefits, projects can address energy equity and decarbonization goals with intentional program design.

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