How VPPs enable an interoperable energy grid

The growing adoption and reliance on renewable energy has increased demands for grid flexibility, in part due to the variable nature of wind and solar generation.. To sustainably meet power supply demand requirements, new approaches are required. 

Integrating distributed energy resources (DERs) behind the meter—such as photovoltaic panels, wind turbines, battery storage systems, combined heat and power (CHP) units, and controllable loads like heat pumps—offers a solution that can leverage the increasingly decentralized energy ecosystem to meet supply and demand challenges. 

Virtual power plants (VPPs) are one such solution. VPPs manage energy by bringing together various DERs to effectively function as a single, flexible, and efficient power plant. A VPP connects to DERs and uses a software-based central control system enabled by AI and other technologies to optimize their power generation, consumption, and storage. 

Essentially, a VPP allows multiple energy resources to be managed as if they were a single power plant with multiple benefits such as reducing energy costs for consumers and supporting a more sustainable energy grid. 

With the rise of smart home technologies, devices within such as smart thermostats, water heaters, and other energy-related appliances can communicate with and respond to a VPP system. By doing so, home DERs can be optimally managed for energy efficiency, load balancing, and overall grid stability. For VPPs to operate effectively, they must seamlessly integrate with their many connected assets and systems.

The importance of interoperability for VPPs

Accordingly, interoperability is an important concept for VPPs. Interoperability refers to the ability of different systems, devices, and applications to seamlessly work together. In energy systems, this means ensuring various energy resources and technologies can communicate and function harmoniously as a system. 

VPPs must work with the grid to perform real-time data exchange, coordinated control, and dynamically respond to changes in energy demand and supply. Since VPPs orchestrate a large number of disparate types of DERs in a variety of environments, effective coordination and communication with these assets is essential. Ideally there should be seamless interoperability across the various DERs, grid systems, and energy markets at all levels, ranging from basic connectivity to regulatory policies.

How device interoperability helps VPPs

VPPs coordinate DERs to play a critical role in enabling seamless real-time data exchange and dynamic energy management – so device interoperability can greatly contribute to achieving an efficient system. Here are some key operations where VPPs can take advantage of a connected and interoperable device ecosystem:

• Monitoring and control. Devices like smart meters, smart thermostats, and energy management systems generate vast amounts of data. Interoperability facilitates real-time sharing and analysis of this data with the VPP control system allowing for accurate monitoring of energy consumption, generation, and storage.
• Dynamic response. VPPs need to dynamically respond to changes in energy supply and demand and other grid events. Interoperable smart home devices can seamlessly provide instant feedback on their operational status and energy usage, allowing VPPs to make quick adjustments. For example, if solar energy generation suddenly drops due to cloud cover, the VPP can more easily work with interoperable devices to reduce energy consumption or draw energy from storage systems.

• Optimizing energy usage. Interoperability makes it simpler to coordinate control of diverse energy resources such as heat pumps, batteries, and smart appliances. This coordination ensures that energy is used efficiently, minimizing waste and reducing overall consumption. 
• Maximizing renewable energy use. Homeowners are increasingly installing renewable energy sources like solar panels. Interoperability ensures that the energy generated by these sources can be seamlessly integrated into the VPP to maximize the use of renewable energy.
• Energy storage management. Interoperable systems facilitate real-time coordination between a VPP and home storage devices, helping smooth out fluctuations in energy supply and demand.

Implementing secure interoperability in smart home energy devices

The benefits of device interoperability for VPPs is readily apparent. To effectively drive interoperability, technology standards are critical. OpenADR and Matter are two important standards that enable interoperability in smart home energy device solutions. OpenADR focuses on energy management and automated demand response interoperability, ensuring that various devices can communicate effectively with VPPs and other flexibility solutions. 

Matter, on the other hand, is a connectivity standard backed by major smart home device companies that aims to ensure devices from different manufacturers work together. While Matter is focused on the overall smart home experience, in May of 2024 it was announced that version 1.3 would explicitly support several energy use cases. 

Together, these standards can help create a standards-based ecosystem for a more integrated, efficient, and user-friendly smart home energy ecosystem that VPPs can leverage. Yet, security is also an important element for any VPP and the security challenges involved in working with home energy devices are numerous and complicated. 

Both OpenADR and Matter include important security elements but may not provide a comprehensive solution. Intertrust XPN (Explicit Private Networking) service can improve and extend security protection for both smart home energy devices as well as their data. Based on the Trusted Energy Interoperable Alliance (TEIA) standard, XPN’s interoperable and persistent protection is especially important since it effectively protects data as it travels from the device to the cloud as well as any commands sent to the device. 

XPN can support devices that don’t comply with Matter and gateways that connect to Matter compliant devices. By integrating with XPN, VPPs can work with home device ecosystems that are both interoperable and enjoy enhanced security.  

Conclusion

Smart home device interoperability is not just a technical requirement but a fundamental enabler of VPPs. By ensuring seamless communication and coordination between diverse devices and systems, interoperability allows VPPs to optimize energy usage, integrate renewable sources, manage loads efficiently, and enhance grid stability. 

OpenADR, Matter and Intertrusts’s TEIA-compliant XPN are all standards-based elements that help drive interoperability in smart home devices. XPN in particular can strengthen both interoperability and security in VPP implementations. As the energy landscape continues to evolve, the synergy between interoperable smart home devices and VPPs will play a crucial role in building a sustainable and resilient energy future. For more information on XPN and TEIA, please visit https://www.intertrust.com/xpn/ (XPN) and https://www.trusted-energy.org/ (TEIA).