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EIP Virtual Power Plant (VPP) Platform Utilization

Aug 9, 2021


Emergency DR Market

In the Emergency Demand Response market, the utility offers incentives for customers who participate in the DR event and cut their electricity load during the peak load or during power system emergencies or contingencies, including system component failures. One of the purposes of the Emergency DR Market is to avoid imbalance and Reduction of procurement costs.

Capacity Market

The capacity market is a system that secures grid stability and supply-demand balance as increasing amounts of electricity power comes from more inconsistent and less predictable renewable energy resources. To maintain grid reliability, utilities have to have extra capacity available to cover spikes in demand created by any of these events — this is called capacity reserve margin. According to the supply plan, the concerns about maintaining an adequate supply capacity are increasing from the viewpoint that a time period below the optimal reserve ratio may occur. Capacity market is introduced to solve the problem of securing supply.

Balancing Market - Supply and demand adjustment market

The balancing market keeps the grid stable by responding to frequency fluctuations and supply-demand forecasting errors, and it sets the incentive for settlement of balancing the difference between the market schedule and the actual system demand.


More than a decade-long presence in the energy industry and long-term partnerships with clients and partners has helped EIP precisely identify the market’s and clients’ delicate requirements.

EIP determined that most client companies participating in the energy markets, whether the markets are up and running or preparing to be launched in the near future, lack flexibility regarding operation/scheduling/management of DR events and energy resources. They are also in need of more precise predictions regarding load generation/consumption, overall automation/error prevention and more reliable communication between the resources and the operating system.

To solve the above issues, EIP has worked closely with our clients on identifying the right approach for each customer’s most requested requirements regarding:

  1. Optimizing the (DR/DER) resource management under multiple market mechanisms:

    1. For energy market

    2. For capacity market

    3. For balancing market / Ancillary service

  2. Maximizing profit and electricity efficiency through the following market applications:

    1. Demand Response

    2. Peak-cut

    3. Arbitrage

    4. Prosumer

  3. Enhancing Energy flexibility with various business models under Micro-grid schemes:

    1. Demand Response

    2. P2G

    3. P2H

    4. V2G / ESS

RESULTS : EIP solution and methodology


Considering the global energy market status, including both the operating energy markets, as well as those yet to be open, EIP is supporting a broad specter of customized functionalities that satisfy the needs of companies participating, or preparing to participate in any of the market mechanisms through various market applications, depending on their business strategy.

EIP has proven records of supporting the various DER applications in the energy markets globally. Through the EIP Platform, in order to maximize (DR/DER) resource utilization, companies now activate EIP’s advanced DR events operating features to create and/or schedule DR events, as well as trigger DR events from upper EMS.

(DR/DER) Resource management scheme under DR market contexts

Conceptual architecture for interfacing xEMS with various standard protocols

This, together with EIP’s energy resource management functionalities, enabled the operators to maximize their energy asset utilizations with optimal resource information management/monitoring and by freely arranging their various resources for participation in different or same events, individually or simultaneously, regardless of the resource owner or the group the resource belongs to. EIP platform supports this flexible operation and management considering the expected DR event participation outcome and comparing it against the electricity prices at the moment of the event, helping the users make the most informed and profitable decisions.

EIP clients also further improved the communication between the Utilities, system operators and the resources through reliable global standard protocols and compliance with the Energy Resources Aggregation Business (ERAB) Security guidelines and Aggregation Coordinator (AC), all of which ensure a stable structure in which two or more operating terminals are used, and confusion is not generated by multiple commands at each operating terminal.

EIP Platform

EIP has the top technological Software-based Energy Management System for fully controlling the energy in a smart and efficient way.

EIP’s business applications and capabilities have the cutting-edge technological infrastructure and provide handy Energy Management System advantages such as:

  1. Cloud-based energy management

  2. Global standard protocol support

  3. Supporting operation of numerous VPPs and Programs under the same account

  4. Full operation and monitoring of various DERs (ESS, EV, EVSE, PV, Fuel cell, etc.), EIP products and services (Demand Response, Home and building energy management, EV management, Microgrid, VPP Platform, Carbon Trading etc.)

  5. Intelligent energy data management (Interoperability)

  6. Optimized Energy Market & Participation and Rewards

  7. Energy Efficiency

  8. Energy Market & Business model-oriented flexible and scalable architecture.

  9. Supporting vertical & horizontal communications based on global standard protocols

  10. Offering DER(Distributed Energy Resources) specific various protocols to gather real-time data.

  11. Supporting ‘VPP Connect (I-ON VPP Client Box)’ inside of ESS Container to have communication between VPP Platform and ESS.

  12. Customized platform for smooth and easy management.

Resource classification

EIP Platform supports multiple market mechanisms, however, such as following the market rules (for the balancing market participation example), resources have to satisfy certain conditions in order to participate. The chart below shows the resource classification and the conditions required for the participation in the markets.

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