Shanghai conducts first million-kilowatt virtual power plant operation

State Grid Shanghai Municipal Electric Power Company successfully conducted its first million-scale Virtual Power Plant (VPP) demand response, marking a major breakthrough in China's smart grid development. 

During peak demand amid record-high temperatures (35°C) in Shanghai, the VPP aggregated resources from 47 operators, including data centers, building Air Conditioning Load, and EV charging stations, achieving a record load adjustment of 1.163 million kW—the highest ever recorded in Shanghai. This operation provided critical support as the city's power grid faced unprecedented strain, with demand reaching 40.55 million kW on August 11. 

A particularly noteworthy achievement was the successful deployment of Large-scale Vehicle-to-Grid (V2G) Bidirectional Interaction Field Demonstration. EVcharge, a leading charging infrastructure provider, contributed 2.6 megawatts through its network of 50+ bidirectional charging stations. "Our ongoing collaboration with State Grid Shanghai has enabled this real-world validation of V2G technology," noted Xiaozhu Zhao, a technical engineer at EVcharge. 

The operation also demonstrated how commercial buildings can serve as flexible grid assets. At Shanghai Xinzhuang Industrial Park, smart adjustments to air conditioning systems - which typically account for half of the complex's electricity use - delivered substantial load reduction without compromising occupant comfort. "This approach creates tangible benefits for both grid operators and facility managers," commented Leijie Teng from its sustainability team. 

With registered VPP capacity growing 81% since 2024 to reach 2.03 million kilowatts across 49 operators, Shanghai is establishing itself as a leader in smart grid innovation. "We've been working to expand urban resources by engaging buildings' air conditioning systems, V2G charging stations, and data centers in VPP operations," said Jianli Zhao, Deputy Director of Demand-Side Management at State Grid Shanghai. "We're creating a new model for urban energy management that combines efficiency with environmental benefits." 

The project's achievements, including breakthroughs in Reactive Power Demand Response and Computing-Power Coordinated Cross-domain Dispatch, are expected to inform VPP development across China as the country accelerates its clean energy transition.