Wuhan’s “Virtual Power Plant” Helps Ease Peak Electricity Demand Without Physical Power Plants

With electricity demand in Wuhan growing over 12% annually for the past three years, the city is turning to an innovative solution: a “virtual power plant” that can adjust power supply just like a real plant—without burning coal or taking up land.

Source: Changjiang Daily

With electricity demand in Wuhan growing over 12% annually for the past three years, the city is turning to an innovative solution: a “virtual power plant” that can adjust power supply just like a real plant—without burning coal or taking up land. This smart system plays a key role in relieving pressure on the grid during the hot summers and cold winters, making the city’s power supply more reliable. On the morning of May 29, a Changjiang Daily reporter visited the virtual power plant in action.

Unlike a traditional power plant, the virtual power plant isn’t a physical facility but an intelligent “power dispatch brain.” Currently, Wuhan’s virtual plant connects a large number of flexible power resources, with a maximum regulation capacity of over 557,000 kilowatts—roughly equal to the output of a medium-sized conventional power plant during peak hours.

“During peak demand, we use the virtual power plant to shave peaks and fill valleys, ensuring a stable electricity supply,” said Peng Yiyi, supervisor at the Marketing and Operations Center of State Grid Wuhan Electric Power Company. By managing resources over a network, the system can slightly raise air conditioning temperatures in large malls, encourage factories to move energy-heavy production to low-demand hours like overnight, and even reduce power at some non-urgent charging stations. These steps effectively ease sudden grid strain and lower blackout risks.

For businesses that cooperate with these demand shifts, real financial incentives are on offer. “Some companies earn more than 10,000 yuan a day just from peak-shift subsidies,” Peng added.

The head of Wuhan’s Virtual Power Plant Management Center said the system has successfully turned electricity users from passive consumers into active contributors to grid stability. This approach not only reflects precise management of widely distributed resources but also marks a major innovation in boosting the resilience of urban power grids.

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