The South Australian government has announced a plan to create the world’s largest Virtual Power Plant to assist the state in improving security, reliability and competition in the electricity system.

The VPP plan, which will be rolled out if a trial is successful, will involve up to 50,000 homes installing solar panels and Tesla Powerwall batteries combining to effectively create a 250MW distributed power plant.

Frontier Economics reviewed the plan. A summary of our analysis is available in this briefing note. Frontier regularly undertakes economic analysis and modelling in the energy sector for a range of clients.

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