+65 97307760, +65 84206285

Book Consultation

Virtual Power Plant (VPP)

From ground zero to the highest point you want to stand at, we watch your back and provide you with the ladder you need.

A Virtual Power Plant (VPP) holds the potential to redefine the way you monitor your energy assets and integrate them to provide you with the highest optimisation of energy production. From analysing your metrics to suggesting you the best solutions to combat various leading issues like grid power outages, high energy loss whilst transmission, etc., with the help of CIOT, your organisation can benefit from the top-notch virtual plant solutions available in the world.

A Virtual Power Plant (VPP) optimizes energy production by analyzing metrics and addressing issues like grid outages and transmission losses via CIOT tech. Boost efficiency and reliability with tailored solutions.
Benefits: Highlight cost savings, efficiency gains, and sustainability
Use Cases: Showcase examples like renewable integration, peak shaving, or grid support
Features: Mention CIOT connectivity, real-time monitoring, and predictive analytics

We understand that producing energy is not your sole motive. Greater importance lies in the optimisation of the same process as well as gearing yourself up for the unexpected circumstances of all. Therefore, we bring you the most advanced technology of VPP, which offers services like balancing the demand and supply chain, predictive analytics and distributing your resources for enhanced system stability and reliability, storing and sharing of energy, etc.

A Virtual Power Plant (VPP) in Singapore aggregates DERs like rooftop solar, BESS, and EV chargers via CIoT platforms (e.g., SP Group’s or NTU’s TrueVPP), optimizing for NEM trading, frequency reserves, and grid stability amid 2035 RE goals.

Benefits: Cost savings via price-aligned dispatch; 15-20% efficiency gains from AI forecasting; sustainability through 40% RE integration and carbon tax reduction.

Use Cases: Peak shaving for AI/data center loads; renewable curtailment avoidance; EMA sandbox grid support (e.g., SP Group’s 15 MW pilot).

Features: CIoT/Modbus RTUs for 99% mobile coverage; real-time EMS monitoring; predictive analytics per IMDA cyber guidelines.

 

Demand Response (DR)


  • Demand Response (DR)  enables contestable consumers to reduce their electricity demand voluntarily, in exchange for a share in the system-wide benefits, in terms of reduction in wholesale energy prices as a result of their actions. DR will take place when wholesale electricity prices in NEMS are very high.
  • Demand Response allows commercial and industrial or institutional organisations to offer their capacity to support the electricity grid in exchange for regular payments via participating in NEMS market. It helps to balance the intermittency of variable supply from Genco’s and solar power by providing instant, dispatchable capacity to the grid when Power Supply Operator (PSO) called on. High energy consumers or businesses will respond by powering down (curtialing loads) or switching to a backup power source or shifting to non peak hours to give their capacity back to the grid. They do this via Virtual Power Plant (VPP).
  • It’s an additional revernue stream for the businesses to generate from market participation.

Virtual Power Plant (VPP)


A Virtual Power Plant (VPP) is a collection of distributed energy assets including batteries, back up generators and onsite equipment that are aggregated to support the grid with dispatchable capacity. The VPP aggregates these assets to participate in Demand Response programs.

High energy consumers or Businesses contribute their capacity by being flexible with when they use grid power. They do this by either powering down or switching to backup power sources or Shiting their load to non peak hours in response to a grid signal which will be activated by Power Supply operator (PSO). This enables more efficient use of energy infrastructure, while helping to provide stable power quality and grid security.

A Virtual power plant will benefit the nation through aggregation of renewable and energy storage resources to more efficiently meet the energy and sustainability needs.

Energy Production Optimisation and Forecast


Energy losses during transmission over greater distances or sudden power failures can disrupt your organisation’s schedule and put huge hurdles in your way. But through the introduction of energy microgeneration and predictive analytics for preparing for any unforeseen event, your organisation can achieve more flexibility and an optimised stage of energy production.

 

DER’s management and system stability


Globally, the energy sector is evolving, driven by technological advances and climate change. Distributed energy resources (DERs) such as solar and energy storage systems today complement traditional power plants which generate electricity centrally. Electricity produced from these energy resources at end users’ premises can be coordinated intelligently like a “single utility-scale power station”. Such a concept is known as a Virtual Power Plant (VPP).

As an alternative, industries are now switching to renewable resources like wind and solar, which help in the on-site creation of energy and can be stored for later usage. Moreover, connecting these units with smart appliances can relieve your organisation by reducing the unnecessary load in the grid. With a VPP, you can easily manage these distributed energy resources (DERs) in the real-time.


FAQ’s

Get prompt responses from a friendly, professional and knowledgable support team.

What is the goal you wish to achieve with the Virtual Power Plant?

Who will participate in the Virtual Power Plant (power plants, technologies, energy sources)?

A Virtual Power Plant can aggregate various energy sources and technologies, including:
– Renewable energy: wind, solar, biogas, hydro power
– Flexible plants: CHP plants, emergency power generators
– Storage technologies
– Flexible electricity consumers: industrial and commercial loads (e.g., grinding, melting, data centres)
– Power-to-x processes

The choice of energy sources influences the Virtual Power Plant’s use case, with flexible plants offering more options for profitably selling flexibility.

Singapore’s VPP pilots under EMA’s 2025 Regulatory Sandbox aggregate distributed energy resources (DERs), not traditional power plants.

Participants and Assets

SP Group: 15 MW VPP with rooftop solar PV, BESS, EV chargers for frequency regulation and reserves.
​NTU/ERI@N (TrueVPP): Partners TCS, Siix-Orient, VFlowTech (flow batteries), Hitachi, Gridwiz, Equiwatt; tests solar PV and storage.
​Blue Whale Energy (BWE): VPP operations with UntroD Capital Asia backing

Technologies and Sources

DERs include rooftop solar photovoltaics (primary intermittent source), battery energy storage systems (BESS, e.g., VFlowTech’s flow batteries), and EV chargers—no conventional fossil/nuclear plants participate directly. These enable market participation in Singapore’s NEM amid land constraints and 2035 RE goals

What market conditions are there in your country (SG)?

Singapore’s energy market is undergoing significant changes, driven by the government’s goal to achieve 40% renewable power generation by 2035 and net-zero emissions by 2050.

Singapore’s market structure is liberalized, allowing independent power producers and aggregation services. The Energy Market Authority (EMA) is developing Virtual Power Plants (VPPs) to aggregate distributed energy resources, like solar and battery storage, to provide electricity and ancillary services.

Key Market Conditions:

– Energy Scarcity: Singapore relies heavily on imported natural gas, with limited domestic energy resources.
– Renewable Energy Push: The government aims to import 6 GW of low-carbon electricity by 2035, with initiatives like Virtual Power Plants (VPPs) and hydrogen-ready power plants.
– Data Center Growth: Data centers consume around 7% of Singapore’s electricity, with projections indicating significant growth.
– Electric Vehicle Adoption: Increasing EV adoption is expected to drive electricity demand higher.
– Grid Resilience: The Energy Market Authority (EMA) is enhancing grid resilience with demand-side resources and incentivizing distributed energy resources

Government Initiatives:

– Regulatory Sandboxes: EMA uses sandboxes to test new energy products and services with reduced regulatory requirements.
– VPP Development: EMA is piloting VPPs to aggregate distributed energy resources and provide energy and ancillary services.
– Hydrogen-Ready Plants: New power plants must be at least 30% hydrogen-compatible by volume

Is there a win-win situation for the plant operator as well as the aggregator?

A win-win situation for plant operators and aggregators is possible through Virtual Power Plants (VPPs). In Germany, plant owners receive bonuses for market integration, and aggregators share profits from selling flexibility in balancing markets. Profit-sharing models or fixed fees ensure mutual benefits, considering factors like plant size, type, and location.

Successful VPPs, like Next Kraftwerke, aggregate decentralized units for real-time trading and grid balancing, increasing revenue for both parties while supporting energy transition.

In Singapore, Virtual Power Plants (VPPs) are being developed to aggregate distributed energy resources like solar panels and battery storage systems, enhancing grid resilience and supporting the country’s renewable energy goals.

The Energy Market Authority (EMA) is piloting VPPs through a regulatory sandbox, collaborating with companies like SP Group and Univers to test their technical and economic viability. This initiative aims to unlock the potential of distributed energy resources, providing energy and ancillary services to the grid

Singapore targets importing 6 GW of low-carbon electricity by 2035, with VPPs playing a crucial role in achieving this goal. The country also requires new power plants to be at least 30% hydrogen-compatible by volume, aligning with its 2050 net-zero emissions target.

How are the plants connected to the control system of the Virtual Power Plant?

Plants are typically connected to a Virtual Power Plant (VPP) control system through remote control units or smart inverters that enable real-time communication and data exchange. This allows the VPP operator to:

– Monitor energy generation and consumption
– Forecast energy output
– Control and steer networked plants
– Provide grid services like frequency regulation and peak shaving

Connection methods may include:
– Internet-based communication protocols (e.g., TCP/IP)
– Cellular networks (e.g., 4G, 5G)
– Proprietary communication protocols

The specific connection method depends on the VPP technology and the type of energy resources being aggregated

In Singapore’s VPP pilots under EMA’s 2025 Regulatory Sandbox, DERs like rooftop solar PV, BESS, and EV chargers connect to the central VPP control system via digital platforms avoiding costly pilot wires.

Connection Methods
Wireless Communication: VPP platforms (e.g., SP Group’s or NTU’s TrueVPP) use wireless protocols to dispatch instructions to DERs in real-time, integrating weather forecasts and AI for monitoring/forecasting

EMS Integration: VPP registers as a single Generation Facility with EMC; communicates with Power System Operator (PSO) via Energy Management System (EMS) using optical fiber or proposed wireless with cybersecurity protocols.

Aggregation Layer: Platforms like NEMOCS scale thousands of assets; DERs send real-time data (feed-in, status) while receiving controls for dispatch, curtailment, or reserves without individual grid registrations.

How does the country's grid code work?

A country’s grid code outlines requirements for grid connection, operation, and system services. It specifies technical standards like voltage levels, communication interfaces, and performance obligations. Plants must meet these requirements and often undergo prequalification tests to provide grid services, like control energy. In Singapore, the Energy Market Authority (EMA) sets grid code standards for grid connection and operation.

Singapore’s grid operates under the Transmission Code (administered by EMA and SP Group) and System Operation Manual (PSO/EMC), ensuring security, stability, and reliability for connections at 400/230/66kV (transmission) or below (distribution).
​Core Requirements
Connection Process: Applicants submit via authorised persons; Transmission Licensee assesses impact on grid (studies within 60-100 business days), proposes schemes, and confirms no threats before energisation.
​Facility Registration: EMC requires PSO advice only for transmission-connected (>66kV) facilities (e.g., solar/BESS); distribution assets streamlined post-2025 rule changes to cut admin for DERs.
​VPP Compliance: Aggregated DERs register as single facilities; use EMS for PSO communication (optical fiber/wireless with cyber standards), meeting frequency/reserve rules without per-asset checks

Which IT security guidelines apply?

IT security guidelines for Virtual Power Plants (VPPs) focus on protecting against cyber-attacks, given their critical infrastructure role. Requirements typically include:
– Compliance with national cybersecurity regulations
– Certifications like ISO/IEC 27001 (information security management)
– Specific standards for energy sector cybersecurity (e.g., ISO/IEC TR 27019)
– Regular security audits and risk assessments

In Singapore, VPP operators must comply with the Cybersecurity Act and guidelines from the Cyber Security Agency (CSA)

Singapore’s VPPs under EMA’s 2025 Regulatory Sandbox follow IMDA’s IoT Cyber Security Guide (SS711:2025) and cybersecurity protocols in the Transmission Code/System Operation Manual for wireless/EMS links.
​Key Guidelines
Access Controls: Strong passwords, MFA for remote ops, role-based access (RBAC/ABAC), physical security on devices/ports.
​Data Protection: TLS/DTLS for comms (MQTT, TCP/UDP), audit logs for all access/changes, threat modeling per STRIDE.
​Resiliency: DDoS mitigation, resource monitoring, anti-tampering, vulnerability scans; subscribe to IMDA ISG-CERT/SINGCERT advisories.

How good is the mobile coverage of the country?

Singapore boasts near-perfect mobile coverage (99%+ nationwide for 4G/5G across Singtel, StarHub, M1), ideal for VPP wireless RTU/EMS links amid land constraints.

Coverage Strengths
Urban/Island-Wide: 99.9% uptime, full 5G in CBD/Orchard/Changi (up to 1 Gbps); strong 4G+ in suburbs/tunnels/MRT.
​Operators: Singtel (99% coverage), StarHub (best overall), M1/Circles.Life (affordable 5G).

VPP Relevance
Excellent for bidirectional M2M (Modbus/IEC 104 over wireless), meeting IMDA cybersecurity and EMA PSO requirements without pilot wires.

Which technological platform will the VPP solution be implemented on?

The VPP solution can be implemented on:
– Self-hosted software: for customized control and data management
– Software-as-a-Service (SaaS): for reduced costs, expert support, and 24/7 monitoring.

The choice depends on specific requirements, like scalability needs and operational expertise.

Singapore’s VPP pilots under EMA’s 2025 Regulatory Sandbox use custom digital platforms developed by participants.

SP Group VPP: Proprietary platform (post-2024 EMA MOU) aggregating 15 MW DERs (solar PV, BESS, EV chargers) for dispatch, NEM trading, and reserves; online for sandbox testing.
​NTU/ERI@N TrueVPP: Testbed with partners (TCS, VFlowTech, Hitachi, Gridwiz, Equiwatt); integrates solar/storage via EMS/cloud for grid services over 2 years.
​Univers EnOS™ (with SP Group): AI-driven energy management platform connecting 365M+ devices globally, piloting orchestration for nationwide scaling.

Platform Suppliers
SP Group: Proprietary VPP platform (with Univers EnOS™ AI orchestration).
​NTU/ERI@N (TrueVPP): Custom testbed with TCS, Hitachi, Gridwiz, Equiwatt software integrations.
​Blue Whale Energy: In-house software for DER orchestration (batteries, solar, smart loads)

How to enter the VPP business?

To enter the VPP business:
– Developed markets: Follow established tendering mechanisms, subsidies, and market access procedures
– New markets:
– Collaborate with network operators on pilot projects
– Pursue bilateral agreements with large electricity consumers
– Explore niche opportunities and innovate for future energy markets

Pioneering work in new markets can open up opportunities and shape the future of electricity markets. Next Kraftwerke’s experience in Germany shows how VPPs can drive change and growth.

To enter Singapore’s VPP business amid EMA’s 2025 Regulatory Sandbox (ongoing pilots, no full market yet), submit proposals via EMA’s grant calls or partner with operators like SP Group/NTU—deadlines were end-2024 but expect annual rounds.

Entry Paths
Sandbox Pilots: Bid for 2-year tests (e.g., Blue Whale Energy, NTU selected Oct 2025); aggregate 15 MW+ DERs (solar/BESS/EV) for NEM services—no subsidies but regulatory exemptions.
​Bilateral Deals: Aggregate large consumers (data centers, industry) for DR via retailer agreements; scale to EMC registration as single facility post-pilot.
​Partnerships: Join SP Group (Univers EnOS™), NTU (TrueVPP with TCS/Gridwiz), or Blue Whale; pioneer via MOU for grid services amid 2035 RE push.

More services

Smart Infrastructure
Industry Automation
Consult With Us