This report consolidates key lessons from Project Symphony to enhance future VPP projects by facilitating scaled DER deployment and participation in the WEM. It provides actionable recommendations to improve project scope, structure, and speed of outcomes. Key areas covered include:
- Strategic Alignment & Governance
- Customer Engagement
- Technical Considerations
- Value Streams
- Regulatory Reforms
Report extract
Project Symphony is a pilot project where customer distributed energy resources (DER) like rooftop solar, battery energy storage and other major appliances, like air conditioning, will be orchestrated as a virtual power plant (VPP) to participate in a future energy market and unlock greater economic and environmental benefits for customers and the wider community.
A collaboration between Western Power, Synergy, AEMO and Energy Policy WA, with funding from ARENA, the Project will understand how the opportunities and challenges of increasing DER can be managed to ensure a reliable, secure, and affordable electricity system. To achieve this purpose, the Project will design, procure, develop, implement, and test software based ‘platforms’ capable of registering, aggregating and orchestrating customer DER to provide ‘must have’ on-market and off-market scenarios.
A primary objective of Symphony was to assess the value of a Virtual Power Plant (VPP) through four test scenarios assessed through a cost-benefit analysis conducted. Difficulties to precisely forecast and communicate the bill impacts of orchestration prevented a clear understanding of financial benefits for customers, who were given an upfront orchestration payment to mitigate potential financial losses. The trial showed that the lack of clear financial visibility caused customer concerns, especially as asset orchestration was delayed until after asset incentive subsidies were distributed, leading to perceived value loss. The orchestration payment, based on conservative initial assumptions, exceeded the actual orchestration impact, highlighting the need for refined assumptions. Project recommendations include:
- Enhance Communication: Create simple, transparent, and accurate information on VPP participation, communicated effectively throughout the customer journey to enhance understanding, buy-in, and retention.
- Improve Engagement Tools: Develop comprehensive end-to-end tools for customer engagement to manage and enhance the customer experience of VPP participation, addressing uncertainties and improving the perception of value from VPP involvement.