China's virtual power plants illuminate path to a greener future (Voice_over) Starting June first, the price of electricity produced from renewable energy in China will be determined by market rather than fixed by authorities. That will unlock huge potential for virtual power plants, or VPPs, which integrate electricity users, power sources, and energy storage providers in a coordinated manner to balance the amount of energy consumed on the grid, with how much is produced. In east China's Lianyungang Port, electric tugboats and battery swapping stations for electric heavy-duty trucks will act as VPPs, operating in off-peak hours when new energy power is abundant and prices are low, and then feeding energy back to reduce electricity load during peak hours and earn market returns. Elsewhere in central China's Xiangyang City, an auto part manufacturer has integrated its distributed solar panels, energy storage and power loads into VPP platforms. (Sound_bite) Yan Han, Head of virtual power plant project, State Grid Xiangyang: "We aggregate power loads from multiple businesses to create flexible resources that help balance supply and demand. By participating in the power market, companies have cut energy costs by up to 8 percent. We plan to expand coverage of virtual power plants to include EV charging stations, commercial storage, and building HVAC systems." (Voice_over) Experts say, China's VPP capacity is expected to exceed 20 million kilowatts in the next three years, just under the installed capacity of the country's Three Gorges hydropower plant. [Restriction: No access Chinese mainland]