Project Identification

  • Official Title: Virtual Power Plants (VPPs) for Sustainable and Resilient Energy Systems in Chile.

  • Project Type: Industrial Research Chair and Technology Transfer.

  • Lead Institution: Center for Energy Transition (CENTRA), Universidad Adolfo Ibáñez.

  • Execution Period: December 2024 – December 2025.

  • Strategic Partner: SAESA Group.

  • Status: Finalized (Phase 1).

Executive Summary

Chile is facing a decisive energy transformation, characterized by high renewable energy penetration and growing challenges regarding grid stability. This project developed a technical and regulatory Roadmap confirming that Virtual Power Plants (VPPs) are a viable solution today to enhance the flexibility of the National Electric System. The study concludes that by aggregating distributed resources (batteries, electric vehicles, and electric heating), it is possible to generate a potential of 8 GW by the year 2035. Furthermore, the project validated that the primary social value of VPPs lies in resilience, enabling “island mode” operation to maintain power supply in critical communities during extreme weather events.

Key Findings & Results

  • Economic Viability: It was demonstrated that VPPs are financially profitable starting from an aggregated capacity of 1 MW, with an estimated Return on Investment (ROI) of less than 4 years under efficient market conditions.

  • Grid Impact: Mass implementation of VPPs could manage more than half of the country’s current peak demand, reducing systemic operating costs.

  • Regulatory Gap: The urgent need to enable the figure of the “Independent Retailer/Aggregator” was identified to break current entry barriers.

  • Future Design: A detailed proposal was delivered for the implementation of a Regulatory Sandbox (Phase 2), designed to test frequency control and backup services in real networks in southern Chile.

Governance & Collaboration

The project was executed under a co-creation model, validating its progress through an Expert Advisory Committee that integrated visions from:

  • Public Sector: Ministry of Energy, National Energy Commission (CNE), and Superintendency of Electricity and Fuels (SEC).

  • System Operations & Trade Associations: National Electric Coordinator (CEN), ACESOL, and Empresas Eléctricas AG.

Milestones & Deliverables

Below are the main products generated during the execution period:

  • Full Technical Report: Extensive document covering network modeling, Optimal Power Flow (OPF) analysis, and business cases. [Download PDF]

  • Policy Brief – Regulatory Pathways: Executive summary with public policy recommendations presented to the authorities. [Download PDF]

  • Participatory Process Report: Proceedings from the expert committee workshops and the international seminar.

  • Pilot Project Design: Technical proposal and protocols for future field validation (Sandbox) in collaboration with SAESA.

Project Team (CENTRA UAI)

  • Academic Leadership: Daniel Olivares, Juan Pablo Torres, Luis Gutiérrez, Rodrigo Barraza.

  • Principal Investigator: Lester Marrero (Postdoc).

  • Management & Studies: Bernardo Severino, José María Cruz.

  • Research Assistants: Vicente Guzmán, Ignacio Pérez.

Categorization

  • Area: Smart Grids / Electricity Markets / Regulation.

  • Tags: #VPP #EnergyTransition #Resilience #Innovation #CENTRA.