Virtual power plants have become the talk of the town as China seeks to address increased demand for electricity amid a heat wave and quickening economic recovery.

Virtual power plants will play a critical role in ensuring power supply by optimizing the integration of various distributed energy sources into a unified and flexible system, said Liu Yujing, power decarbonization manager of RMI China, an independent nonprofit organization focusing on the transition to clean energy.

These plants are becoming increasingly important to supplement conventional power units in ensuring reliable and stable energy supplies, especially at a time when temperatures are soaring across various regions in China, Liu said.

By pooling diverse energy sources such as solar panels, wind turbines and energy storage systems, virtual power plants are capable of generating and managing electricity at utility scale, making them an important component in promoting low-carbon and energy-efficient development, she said.

A virtual power plant uses advanced technologies and software systems to collect data on the electricity generated from distributed sources, such as rooftop solar power facilities, power storage systems and electric vehicles.

Virtual power plants are different from conventional power plants as they do not generate electricity. Instead, they intelligently balance supply and demand by coordinating the output of different energy resources based on grid conditions, market signals and consumer preferences, and optimize the supply of electricity.

Virtual power plants supplement conventional power plants in allocating power generated from distributed sources in case demand surpasses supply, said Liu.

Traditionally, the core logic of meeting peak summer demand has been focusing on implementing a series of measures on the supply side and the power grid side, so as to fulfill the requirements of the load side. However, with the widespread adoption of distributed energy sources, energy storage and smart technologies on the load side, there exists significant flexibility and adjustment capability, she said.

According to Liu, the essence of a virtual power plant is a model that aims to fully utilize these existing load-side resources to maintain the balance of the power system. This approach enhances the flexibility of the power system, reduces the need for investment in new assets, and provides a new avenue for cost reduction and benefits for the load side.

Han Wenke, director of the Energy Research Institute at the National Development and Reform Commission, said it is necessary to meet power demand through methods such as virtual power plants and supportive policies should be extended to local power grids, incremental distribution networks and microgrids.

The National Climate Center recently forecast that summer temperatures in most parts of the country are expected to be in line with or higher than the average levels recorded in previous years.

Yu Bing, deputy head of the National Energy Administration, said along with local governments and power suppliers, relevant departments have made solid efforts in supply-demand forecasting, fuel supply, cross-regional power transmission, and the maintenance of electrical equipment.

Shenzhen in Guangdong province established a regulation center for virtual power plants last year, the first of its kind in China. Jiangsu province, Zhejiang province, Shanghai and other regions have so far implemented the practice of virtual power plants, according to Sealand Securities, collecting power mainly from energy storage facilities, charging piles and residential buildings.

The Chinese government and power suppliers have made sustained efforts to ensure stable supply of electricity during the summer.

State Grid Corp of China, China's major power supplier, said as the electricity load had been on the rise since the beginning of summer, with the recent peak load hitting 890 million kilowatts, the company would accelerate the construction of major power grid projects and improve its emergency power supply schemes during typhoons, thunderstorms, mountain fires and other disasters.

China Southern Power Grid said efforts will focus on safeguarding the industrial and supply chains to power regional economic and social development.

China Southern's business covers five areas - Guangdong, Yunnan, Guizhou and Hainan provinces and the Guangxi Zhuang autonomous region - in the country.