China is building its first gigawatt-scale residential virtual power plant (VPP) in Jiangsu province. The project will connect millions of high-power household appliances to a cloud-based energy pool to improve grid stability and boost renewable energy use.

From ESS News

A new gigawatt-scale VPP project, launched by Jiangsu Electric Power Co. under State Grid Corp. of China, will aggregate devices such as air conditioners and electric water heaters from millions of Chinese households.

By leveraging advanced technologies like big data, Internet of Things, and AI, the VPP will enable more efficient load management, particularly during peak demand seasons in summer and winter. Homeowners will be able to participate in demand-response programs and receive financial incentives for adjusting their energy consumption.

“When electricity demand is forecasted to be tight, the grid operator will send invitations to residents via their mobile devices, encouraging them to adjust the temperature settings of high-power appliances to reduce consumption and earn rewards on their electricity bills,” said Duan Meimei, head of the load management center at Jiangsu Electric Power, in a recent interview with the Xinhua News Agency.

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