Virtual Power Plant (VPP) Aggregator Pla Diagram

Strengths

• Expansion of the ancillary services market driven by policy, providing clear revenue potential for aggregators
• Replicable platform technology with low marginal costs for aggregation

Weaknesses

• Difficulty in signing up resource owners and low perceived individual benefits
• Dependence on grid policy subsidies, leading to uncertainty in market-based returns

Opportunities

• Construction of new power systems creates demand for peak regulation, positioning VPPs as key participants
• Continuous growth in energy storage and charging pile installations expands the pool of aggregateable resources

Threats

• Price volatility in the spot power market may impact subsidy levels
• Increased competition from large power generation groups and grid-affiliated enterprises building their own VPPs