A Professional’s Guide to Virtual Power Plants (VPPs)

Purpose of This Guide

This guide is designed for solar professionals, electrical contractors, and energy consultants who require a technical and operational understanding of Virtual Power Plants (VPPs) as they relate to residential and small commercial systems. It builds upon the WE Share VPP initiative and outlines relevant implementation requirements, system integration considerations, and market structures.

  1. What Is a VPP — Technical Definition

A Virtual Power Plant (VPP) is a digitally managed, distributed network of energy assets — including solar PV systems, batteries, and flexible loads — aggregated to operate like a single power plant. It uses a centralised platform to coordinate these assets in real time, optimising grid support, energy trading, and load balancing.

Key Features:

  • Asset aggregation: Rooftop solar, batteries, hot water cylinders, EV chargers
  • Centralised control: Software platform (API-connected) for optimisation
  • Bidirectional trading: Energy can be bought and sold within the network
  • Grid responsiveness: Supports frequency, demand response, and voltage management

  1. Hardware + Technical Requirements

For Generation Sites (with solar and/or battery):

  • Smart inverter (AS/NZS 4777.2 compliant)
  • SIGENERGY, FOXESS, or equivalent VPP-ready inverter brands. Additional brands will be assessed and included after the pre-pilot stage is complete
  • Certified battery system with remote dispatch capabilities
  • Smart meter with interval data (preferably 5–30 minute resolution)
  • Reliable broadband or cellular connectivity

For Off-takers (no generation):

  • Smart meter
  • Smart appliance interface (optional, for load control)

  1. Platform + Integration

The WE Share project is working in partnership with Ecotricity and infrastructure operator Vector. VPP orchestration will be facilitated through an API-enabled software layer capable of:

  • Real-time dispatch and settlement
  • Metering data ingestion (via ICPs)
  • User-level rules for buy/sell preferences
  • Access to time-of-use pricing and tariff optimisation

This platform will be designed to meet tactical requirements, with Ecotricity, Our Energy, and WE Share collaborating to investigate integration options and determine the most suitable orchestration approach.

  1. Regulatory + Market Context (NZ-specific)

  • ICP-linked metering and settlementregulated under Electricity Industry Participation Code (EIPC)
  • Network coordinationin consultation with Vector
  • Trading partner: Ecotricity
  • Participation requirements: SEANZ-accredited installer; systems must meet local DNSP connection standards
  • Consumer protections: Transparent opt-in/out, fair value trade guarantees

  1. Installation Considerations + Best Practice

  • Prioritise retrofit readiness assessments— older homes may require switchboard upgrades or battery isolation work
  • Confirm system compatibility with VPP onboarding — not all battery systems allow external dispatch
  • Validate connectivity during commissioning (latency, response)
  • Provide onboarding support for customers: consent forms, usage transparency, exit protocols

  1. Strategic Benefits for Professionals

  • Offer customers participation in future-ready energy models
  • Access additional revenue streams via VPP incentives
  • Build reputation in aligned climate, resilience, and affordability initiatives

 

To participate or align your installations with WE Share’s VPP pilot, contact the technical support team or refer to the WE Share Installer Portal.