Shaanxi Province took a major step toward advancing virtual power plant (VPP) development by releasing two key implementation plans.
Source: Sanqin Metropolis Daily
On June 16, Shaanxi Province took a major step toward advancing virtual power plant (VPP) development by releasing two key implementation plans. Jointly issued by the Northwest Regional Regulatory Bureau of the National Energy Administration and the Shaanxi Provincial Development and Reform Commission, the documents lay out a roadmap for VPP construction, operation, and market participation—marking a critical follow-up to a series of national-level policy incentives.
The plans specify that VPPs in Shaanxi will primarily aggregate distributed solar PV, decentralized wind power, standalone energy storage systems, and dispatchable demand-side resources. All aggregated assets must be independently metered, registered in the electricity market, and capable of responding to dispatch instructions.
Resources will be categorized based on their controllability into two types: real-time direct control and day-ahead response. Assets in the real-time category must be capable of interacting directly with dispatch systems and delivering instantaneous response.
To ensure orderly market participation, the plans introduce strict technical and capacity thresholds. VPPs seeking to participate in medium- and long-term as well as spot market transactions must be licensed as power retailers. The total adjustable capacity must be no less than 5 megawatts (MW), with each individual node contributing at least 0.5 MW and able to sustain dispatch for at least one hour. The registration process includes capacity testing, public disclosure, and commitment verification to ensure asset integrity and response reliability.
In terms of metering and settlement, the plans adopt the principles of independent measurement and node-based time-of-use settlement. VPPs will settle transactions through node-level trading units, with deviations settled at spot market prices. Settlements will be reconciled daily and finalized monthly. A deviation tolerance is permitted, initially set at ±10%.
Together, these policy documents provide a regulatory foundation for scaling VPP deployment in Shaanxi—from early pilot projects to broader application. As China's power system continues to integrate higher shares of renewables and strengthen demand-side response mechanisms, VPPs are set to play an increasingly vital role in ensuring grid flexibility and energy efficiency.
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