Virtual Energy Storage System Using Energy Management with Flexible Load for Capacity Reserve

Peak demand is expected to increase due to population growth, climate change, evolving lifestyles, and technology advancements, leading to the necessity of investing more network equipment to handle these peak periods. While Energy Storage Systems (ESS) could address this, their high capital investment poses a challenge. Thus, a Virtual Energy Storage System (VESS) emerges as a cost-effective solution. A VESS uses flexible loads like air conditioners to manage energy demand in real-time. Instead of physical storage, VESS adjusts appliance energy consumption based on grid conditions. This paper presents the development of a VESS prototype using a flexible load to provide similar functions to ESS. By coordinating the demand response from the air conditioner, it aims to store and release energy, thereby increasing the flexibility of the end user’s load and increasing the capacity reserve of the building. The results show that the proposed VESS, coordinating the demand response from the air conditioner, can achieve an energy reduction of $21.74 \%$. The system adjusts air conditioner settings based on outdoor temperatures, consuming more energy in cooler mornings and less in warmer afternoons, mimicking the behavior of an energy storage system (ESS), thereby increasing the flexibility of the end user’s load and the capacity reserve of the building.