Flexible demand-side resources play a crucial role in the construction of new power systems. Virtual Power Plants (VPPs) can help aggregate small-scale demand side resources such as electric vehicles (EV) and air conditioners (AC) to reduce electricity demand at a larger scale. 

NRDC and Tsinghua Sichuan Energy Internet Research Institute (EIRI) organized a workshop on Unlocking the Potential of Air Conditioning and Electric Vehicles in VPPs on December 10. Two reports showcasing the role of ACs and EVs in in Shenzhen and Suzhou - two pioneer cities in VPP development in China-were released at the event. Both cities are increasingly relying on external power supply to meet continued load growth, especially with high air conditioning use and growing shares of electric vehicles. Mobilizing these resources through virtual power plants can ease local power supply pressure as well as facilitate greater use of renewable energy. 

Experts from China EV100, State Grid Energy Research Institute, State Grid Smart Vehicle Network Technology Co., Ltd., and GCL Energy Service Co., Ltd called for accelerated efforts to identify valuable but often overlooked demand-side resources and establish enabling policies and mechanisms to promote their participation in power system regulation. The report findings and experts’ insights were covered by key industry media, including  China Energy News, China Industry News and The North Star.