Velocity Energy’s Smart Grid virtual power solutions: 7 reasons ‘why’
Velocity Energy’s Smart Grid virtual power solutions bring direct economic and environmental benefits to generator owners, energy distributors, energy retailers, and all of Australia.
1. Create a new source of revenue for generator owners
Velocity Energy gives generator owners the opportunity to use their assets to earn revenue. By allocating their generators’ unused electricity to Velocity Energy as reserve supply for the grid, their assets become a source of revenue. Asset owner’s energy needs aren’t affected as their generators are used to meet their own requirements first, and only the unused excess is supplied to the grid. By using their own generators to power their needs during periods of peak demand, asset owners boost their bottom lines too, by decreasing the amount of energy they need to buy from the grid. Energy retailers also benefit from customer loyalty as a result of providing business customers with a new source of revenue.
2. Increase reliability and lifespan of assets for generator owners
Generators need routine testing and maintenance to ensure they are in reliable condition to provide energy when it’s needed. The generators in Velocity Energy’s Smart Grid power stations must be 100% dependable so electricity supply to the nation is not disrupted. Generator owners can benefit from Velocity Energy providing routine maintenance, running regular ‘on load’ testing, and remote monitoring of their generators so problems are identified and addressed immediately. This gives generator owners the added benefit of assured asset reliability and increased generator lifespan.
3. Provide economical peak load demand solution for energy distributors
By delivering controllable, rapid and reliable reserve capacity through small scale local generator assets, Velocity Energy provides energy distributors with a cost effective solution for managing peak load demand without investing in additional expensive network infrastructure.
4. Smooth out peak demand and reduce financial risk for energy retailers
Providing reserve additional capacity into the grid during periods of peak demand, as well as taking demand off the grid by utilising asset owners’ supply from the grid to their own generators helps smooth out peak demand. This reduces energy retailers’ exposure to market risk and financial losses.
5. Provide Australia with reliable energy
With energy use climbing at 2% per year1 and peak demand growing at about 50%2 more than base demand growth, Australia faces the risk of blackouts and undependable energy supply. Velocity Energy’s virtual power stations provide a solution to help reduce the risk.
6. Support renewable energy sources
Velocity Energy’s virtual power solutions can power up and down quickly on demand and can provide flexible electricity loads. They create a low carbon energy source to balance demand and supply in response to variations in wind, wave, tidal and solar generation.
7. Contribute to a low carbon economy
Every megawatt of capacity connected to Velocity Energy’s Smart Grid virtual power stations is a megawatt that does not have to be held in reserve in a coal station kept in hot standby mode or on part load to provide reserve capacity. This reduces carbon emissions by between 300 -750 tonnes annually for each megawatt.3 Velocity Energy’s peak demand solutions also decrease the need for construction of new power stations that will only be used 1% 4of the time.
1. AER, 2010
2. NEMMCO, 2005 Statement of Opportunities
3. “Comparison of the Impact of Carbon Pricing on the Use of Embedded Generators and Grid Supplied Electricity”, RPS Australia, 2011
4. ‘Securing Queensland’s Energy Future: Regulation for Electricity Demand Management’