Plico Virtual Power Plant

A peak demand VPP event will occur when demand on the grid is expected to exceed supply. The energy market operator will direct Plico and other service providers to send additional energy to the grid or reduce demand.

On the day of a peak demand event or test, the following will occur:

1. From approximately 3 pm to 5 pm
   Your battery will be set to charge and store, ready to send additional energy to the grid later that evening. Your battery will not discharge to your home. 
2. From approximately 5 pm to 8 pm
   Your battery will discharge to the grid for up to 3 hours. The less energy you use at this time, the greater your VPP impact and your VPP rewards, as your battery will discharge to both your home and the grid. 
3. After the VPP event
   Once the VPP event has ended, your system will operate as normal. Your battery may be empty which means you will draw from the grid overnight. You are paid at 3x your costs for the energy you would otherwise draw from your battery. 

You will receive 3x your costs for the energy exported from your battery to the grid.

Please ensure your inverter is always online.

In the event there is a blackout in your area at the same time as a VPP event, your system will not discharge to the grid. It will power only your back-up circuit to maintain grid safety.

To find out if a peak demand VPP event is underway, please refer to the Member Support page on the Plico website or sign up for SMS notifications. 

A Virtual Power Plant (VPP) is a network of distributed energy resources (DER), in our case household solar + battery, or solar/battery systems, that is managed remotely to provide services to the grid.

VPPs help stabilise the grid by managing energy supply and demand using their participants' clean energy systems. These systems are connected to the grid network, allowing them to both import and export energy. They are also connected to the internet which allows them to receive VPP commands to send more or less energy to the grid, depending on what the grid needs. VPPs can also be used to help mitigate voltage fluctuations and regulate frequency on the grid network.

Just as a network operator can stop the supply of energy from rooftop solar, Plico’s VPP can limit the amount of solar exports when supply in the grid exceeds demand. But the great thing is that Plico members can get paid for providing this service.

And on the flip side, Plico’s VPP can provide an additional source of energy to the grid when needed just like a coal-fired power station provides a supply of energy to meet demand - although in our case it is clean energy! The energy in Plico’s VPP is sourced from rooftops scattered across WA and stored in solar batteries. Think of it as a clean, green, pop-up power plant.

VPP participants can also contribute to supply and demand management by changing their behaviours during a VPP event.

VPPs use advanced software and communication technology to connect and control a network of clean energy systems.

The VPP works by sending commands to all the connected systems that form part of the VPP network. This is done through a centralised digital energy monitoring platform that continuously monitors all connected systems in real-time. The command is sent over the internet and is received by all systems with online inverters.  

When there is a VPP event, a command is sent to all connected systems at the same time, which alters the normal functionality of the system. In a sense, the systems switch from auto to active mode – they are following the VPP commands for the duration of the VPP event.   

There are two key services that the Plico VPP provides: peak demand and minimum demand. There is an FAQ covering both of these services. 

The Plico VPP helps balance supply and demand on the grid. There are two key scenarios that challenge the grid: peak demand and minimum demand.

Peak demand occurs when energy demand on the grid is high and energy supply to the grid is low. This usually occurs on hot summer evenings when energy demand increases just as solar exports start to decrease.   

Minimum demand is when the opposite occurs; energy supply to the grid is high and energy demand on the grid is low. This can occur in the middle of mild sunny days when solar exports to the grid are high but there is low demand from homes, business and industry.

Both peak demand and minimum demand create a high degree of fluctuation between supply and demand at varying times in a given day, and both scenarios can cause serious issues for maintaining grid stability. The good news is that our VPP can help smooth out these fluctuations by managing supply and demand using our fleet of solar + battery, battery only and solar only systems.

When a VPP event is called by the energy market operator, the Plico VPP activates its fleet of clean energy systems to help stabilise the grid and generate VPP rewards for its members.   

Find out more about minimum demand and peak demand in the sections below. 

Plico uses an advanced digital energy monitoring platform to manage the VPP. 

With this platform, Plico has full visibility and control over the fleet of solar + battery and solar/battery systems, allowing us to provide essential grid services as a VPP. The platform also allows us to look at individual connected systems and ensure systems are working optimally. Individual data can only be integrated into the platform when inverters are online. It's therefore essential that Plico members keep their inverters online at all times. 

The Plico VPP provides services for the South West Integrated System, or SWIS.   

This is the major grid network in WA and is managed by Western Power. The SWIS runs from Kalbarri to Bremer Bay and east to Kalgoorlie. This is also the region where the majority of our Plico members are located.  

This region is also where the WEM, the Wholesale Energy Market, operates and it is in this market that the Plico VPP trades energy.

Plico members receive VPP rewards for the energy they contribute to the VPP.

You will receive 3x your energy costs for energy exported from your battery to the grid in a VPP event.

VPP rewards are provided as a credit on your Synergy bill from April 2025.

This means that if you are on the Synergy Home Plan (A1) tariff, you pay 31c a unit for your energy and essentially sell it in the VPP for 94c a unit. You make a profit of 63c on each unit of energy you contribute to the VPP. 

If you are on a different Synergy tariff, you will be paid at 3x your energy costs. For up-to-date pricing please visit: https://www.synergy.net.au/Your-home/Energy-plans 

Peak demand VPP event

You will be paid at 3x your energy costs for the energy exported from your battery to the grid during a VPP event or test.

You will also continue to receive DEBS payments for your solar exports (if they apply), and these will appear as they currently do on your Synergy bill.

Minimum demand VPP event

There is currently no minimum demand service for the Plico VPP.

Note that all VPP rewards are subject to you providing your NMI to us and your inverter being online. 

Our VPP is designed to financially benefit Plico members to ensure that members are always better off being part of the VPP. You are always remunerated at a higher rate for your energy than what it costs you, all without having to lift a finger. The VPP is another way you get more value out of your clean energy investment. 

If you're unsure how you benefit or how payments are calculated, read on as we explain this in detail. 

Peak demand VPP event - Drawing from the grid overnight

During a peak demand VPP event, your battery storage helps boost energy supply to the grid. This usually means you need to draw energy from the grid overnight, to make up for the energy used during the VPP event. The additional energy you need to purchase from the grid, because your battery has been discharged for the VPP, is the same amount of energy that would otherwise be drawn from your battery. You receive VPP rewards at 3x your energy costs for the energy used in the VPP, which means you're already ahead financially when you buy energy from the grid later that evening. 

Peak demand VPP events occur on hot summer afternoons and evenings when the energy use in your home may also be at its highest. It's likely you will use more energy than other evenings. This is not because of the VPP event, but because it's a hot evening and you need to leave the A/C on for longer. 

Any energy you draw from the grid after a VPP event is energy you would otherwise draw from your battery - and this energy is paid for at 3x your energy costs. We just discharge your battery energy at a faster rate than you might in your home - but rest assured, it's the same amount of energy.

The example below has been simplified to demonstrate how your VPP rewards work. 

If you have a 10 kWh battery and 9 kWh is exported to the grid during a peak demand VPP event (assuming your energy use is minimal), we will pay you 3x your costs for 9 kWh. This is around $8.50 (on the Synergy Home Plan (A1) tariff).  When you purchase this 9 kWh from the grid later that night, you will only pay $2.80 for the same amount of energy.

This 9 kWh can be broken into 9 kW used in one hour, 1 kW used per hour for 9 hours, 2 kW used per hour for 4.5 hours and so on. Any energy you use above 9 kWh overnight is energy you would need to purchase anyway, regardless of whether you started the night with a full battery or not and regardless of a VPP event occurring.

Note that your battery will also supply energy to your home during the discharge phase of a VPP event. You are paid for the energy exported from your battery to the grid. 

Solar exports

During a peak demand VPP event, you may also receive DEBS payments for your exports to the grid. These are around 10c/kWh after 3 pm (depending on what Synergy Energy Plan you are on) and are credited on your Synergy bill. This is in addition to the VPP rewards you receive for VPP events. 

Where does my energy go?

Your household energy consumption will always be prioritised in a VPP event. When your battery is charging and storing, you will normally produce enough solar energy to power your home. When your battery begins to discharge in a VPP event, any energy not being used in the home will be exported to the grid for a two-hour period.

That's why we suggest you can reduce your energy use if you wish to, so that you can increase your net VPP impact (increase your exports back to the grid) and your VPP rewards.  

Getting more value from your battery

For some members, a peak demand VPP event allows them to get more value out of their battery by ensuring its full capacity is utilised. For example, if you often have battery capacity left in summer when the sun rises, it is simply topped up to full capacity. During a peak demand VPP event, the VPP can utilise up to all your available battery capacity to support the grid. This allows you to get more value out of your battery as we compensate you for energy you may not have utilised in your home.  

If there are consecutive peak demand events, such as during a heat wave, your battery is charged as normal during the day - ready to run your home and support the grid all over again.  

You can increase your contribution to the VPP, and in turn increase your VPP rewards or profit, by ensuring your inverter is online so it can participate in all VPP events and tests. You can also adapt your behaviour during VPP events. Make sure you sign up for SMS notifications so you know when these events occur. 

Peak demand VPP event

When your battery is discharging to the grid, you can reduce energy use as much as possible so that most of your battery energy is exported to the grid. Reduce energy use by turning off any unnecessary appliances and changing your usual habits. You might consider leaving the house to maximise your impact, arranging a BBQ dinner, fish and chips on the beach or spending time at your local park to keep energy use at your home to a minimum.  If you are home, you can turn off your A/C, computers and TVs and delay your washing, retic and pool pumps until after the VPP event. 

Minimum demand VPP event

There is currently no minimum demand VPP service. 

You will receive VPP rewards for each eligible system you have that participates in a VPP event or test.

If you have a rental property with a Plico system, the VPP rewards will be issued to whoever pays the Synergy bill at the property.

Your VPP rewards are applied to your Synergy bill and issued by your NMI.

You will receive 3x your energy costs for energy you contribute to a VPP event or test. This is based on your current Synergy tariff. 

You will need to advise us if you ARE NOT on the Synergy Home Plan (A1) tariff so we can apply your rewards based on your current tariff. 

Several Plico members have switched to the Synergy Midday Saver Tariff, which has three different tariffs depending on the time of day. If you are on this tariff, or any other tariff, you will receive 3x your energy costs based on that tariff.

For up-to-date pricing please visit: https://www.synergy.net.au/Your-home/Energy-plans 

When you joined Plico, you also joined the VPP. 

That means your system is already connected to WA's largest privately-owned VPP. How good?!

To ensure your system participates in VPP events and earns you VPP rewards, you need to keep your inverter online at all times.

We also need to have your NMI (National Meter Identifier) on record. If we do not have your NMI, we will be in touch to get this information from you. You can find your NMI on your Synergy bill.    

If we have your NMI and your inverter is online, your system will receive VPP commands from our remote digital monitoring platform when there is a VPP event or test. These commands will switch your system from its normal operating mode to VPP mode, ready to give the grid a boost of energy and earn you VPP rewards.   

Note that in rare cases, your system may not receive VPP commands and will therefore not participate in a VPP event. In this case, you won't contribute energy to the VPP and won't receive VPP rewards. 

Not all connected systems will be active in every VPP event. Whether your system participates in a VPP event or not will depend on the following factors: 

• Your inverter being online with a solid internet connection. 

• Your battery having enough charge/capacity.  

• The VPP command being received and implemented by your system. A drop in connectivity can prevent the VPP command being received and in rare cases, your inverter may reject the VPP command.

• Your system not being in back-up mode due to a blackout.

• Us having your NMI (National Meter Identifier) on record. 

We keep a close eye on the VPP network. If your system is not active during a VPP event, then no energy will be utilised and no VPP rewards will be applied.  

You can sign up for SMS to be notified each time there is a VPP is event. You can opt-out of this service anytime. 

A banner will also be displayed on the Member Support page of the website that will include details of any VPP events.   

The great thing about the VPP is that you don't have to do anything if your inverter is online. The VPP will take care of everything, and you'll receive your rewards. So, if you don't want to know every time there is a VPP event, you don't have to - it's your choice. 

Peak demand is when supply to the grid is low and demand from the grid is high.

Peak demand usually occurs on hot summer afternoons and evenings when solar exports to the grid start to drop and demand increases. This can happen over consecutive days and is often associated with heat waves. 

Maintaining a balance between supply and demand is important for a stable and reliable grid. When energy demand is too high and supply is too low, it creates an imbalance that can lead to blackouts. Energy fluctuation is a challenge in maintaining a stable and reliable grid.

A peak demand VPP event will occur when demand on the grid is expected to exceed supply. The energy market operator will direct Plico and other service providers to send additional energy to the grid or reduce demand.

On the day of a peak demand event or test, the following will occur:

1. From approximately 3 pm to 5 pm
   Your battery will be set to charge and store, ready to send additional energy to the grid later that evening. Your battery will not discharge to your home. 
2. From approximately 5 pm to 8 pm
   Your battery will discharge to the grid for up to 3 hours. The less energy you use at this time, the greater your VPP impact and your VPP rewards, as your battery will discharge to both your home and the grid. 
3. After the VPP event
   Once the VPP event has ended, your system will operate as normal. Your battery may be empty which means you will draw from the grid overnight. You are paid at 3x your costs for the energy you would otherwise draw from your battery. 

You will receive 3x your costs for the energy exported from your battery to the grid.

Please ensure your inverter is always online.

In the event there is a blackout in your area at the same time as a VPP event, your system will not discharge to the grid. It will power only your back-up circuit to maintain grid safety.

To find out if a peak demand VPP event is underway, please refer to the Member Support page on the Plico website or sign up for SMS notifications. 

Coal production is gradually being phased out in WA and across Australia. As we move away from coal in the energy mix, the grid is challenged to provide enough dispatchable power for times of peak energy demand. 

Hot summer afternoons create the perfect conditions for peak demand to occur. While solar provides ample energy supply in the middle of the day, it begins to drop off when at the same time demand increases, as everyone gets home from school and work and begins to cool their home. These fluctuations pose a significant challenge to maintaining a stable and reliable grid.

VPPs can help manage peak demand by providing a boost to energy supply and stabilise the grid. 

Your household energy consumption will always be prioritised in a VPP event. When your battery is charging and storing, you will normally produce enough solar energy to power your home. When your battery begins to discharge in a VPP event, any energy not being used in the home will be exported to the grid for a two-hour period.  

That's why you may choose to reduce your energy use if you wish to, so that you can increase your net VPP impact (increase your exports back to the grid) and your VPP rewards.   

The VPP will not cause blackouts. If there is a blackout during a VPP event, your system will stop exporting and provide energy to your back-up circuit as it normally would. During a blackout, your system will use the available capacity in your battery. A minimum of 5% is usually reserved to protect the battery. 

If a blackout occurs after a VPP event, the same rule applies. The system will use any available capacity in your battery to power your back-up circuit. If your battery is empty, your back-up circuit will not be powered. It is rare for a blackout to coincide with a VPP event, but it can occur. 

If you are concerned about blackouts, you can request to have your minimum State of Charge increased so that you have more reserve in the event of a blackout. Please complete a Member Support Form and our team will apply the change for you or provide instructions on how to do this yourself. Please note that increasing your minimum State of Charge will impact how much capacity your battery has on non-VPP event days. 

Minimum demand is when supply to the grid is high and demand from the grid is low. 

Minimum demand usually occurs in the middle of the day on mild sunny weekends or public holidays when solar exports to the grid are high and demand is low.

Maintaining a balance between supply and demand is important for a stable and reliable grid. When energy demand is too low and supply is too high, it creates an imbalance that can lead to blackouts. Energy fluctuation is a challenge in maintaining a stable and reliable grid.

There is currently no VPP service for minimum demand.

Here is what may happen in a minimum demand VPP event in a future VPP service. 

When a minimum demand VPP event occurs, Plico solar only and solar + battery systems will have their solar panels switched off. All of your household energy use will be drawn from the grid and your battery will charge from the grid.  

If you added a battery to your existing solar, you may choose to switch off your solar during a minimum demand VPP event or test. Contact us if you need assistance switching your solar off for the test.  

Please ensure your inverter is online and if you can, increase your energy use during a minimum demand VPP event or test to ensure you provide maximum load on the grid. You can do this by setting timers on your appliances and using as many appliances as practical if you are home during an event.

To find out if a minimum demand VPP event is underway, please refer to the Member Support page or you can sign up for SMS notifications.

Coal generators provide baseline power for the grid – when demand drops below this baseline it prevents these generators providing essential grid services.  

When your home is not using the solar energy generated from your rooftop solar panels, the excess is exported to the grid. If that excess solar energy isn’t being used up because demand for energy is low, it creates an oversupply that destabilises the grid.  

Mild sunny days create the perfect conditions for minimum demand to occur; solar exports to the grid are high in the middle of the day, while household demand is low (homes and businesses are not using their A/Cs for cooling or heating). Then solar generation reduces in the evening and energy demand on the grid increases. These fluctuations pose a significant challenge to maintaining a stable and reliable grid. 

All Plico members with a system installed in WA are part of the VPP.  This includes Plico VPP only contracts. 

The systems used in the VPP are Redback and Alpha ESS solar + battery and battery only solutions. Inverters must be online for members to receive VPP rewards. New members will be automatically added to the VPP network and receive VPP rewards for any VPP events their system contributes to.

We need to have your NMI (National Meter Identifier) on record and your inverter needs to be online to participate in the VPP. 

All Plico members have signed a Virtual Power Plant Service Agreement contract. This means that when you joined Plico, you also joined the VPP.   

Your agreement states that: we will supply a range of services to you or for your benefit, and we or our energy contractor may operate our equipment and provide VPP products to third parties through the wholesale electricity market or otherwise. 

Being part of the VPP is easy. We handle everything from your VPP rewards to activating your system in a VPP event. All you need to do is sit back while you essentially sell your energy for a profit!

As part of your Plico contract, you have signed up to participate in the VPP. Please contact us to discuss a possible solution.

You can join the Plico VPP if you have an AlphaESS or Redback solar battery. Join Plico as a VPP Only member and you'll start receiving rewards for your energy. 

Find out more here.