Both the companies have concluded a technology partnership to offer power supply companies and network operators the necessary technology for implementing virtual power plants.

Siemens, within the framework of this operation, would increase the presence of its decentralized energy management system DEMS in the US market, since Viridity is combining the decentralized energy management system DEMS from Siemens with its own applications so it can offer innovative energy solutions and services in this market.

In a virtual power plant, various distributed power generation systems such as engine-based heating power plants, wind turbines, photovoltaic systems, biogas plants and small hydropower plants are combined into a network and controlled as a single power plant. The core element is a decentralized energy management system such as DEMS from Siemens.

A power plant solution from Siemens and Viridity provides a way to integrate distributed power generating plants into a power supply grid and represents a further step towards establishing a smart grid. The core element of the joint solution is the decentralized Siemens energy management system DEMS. This acts as the “brain” of a distributed power generator fleet, networking the individual power generation units and controlling them centrally.

DEMS uses all important information such as weather forecasts, latest electricity prices and the momentary demand for energy, and draws up a deployment plan for all plants in the virtual power plant on the basis of this data.

Audrey Zibelman, president and chief executive officer of Viridity Energy, said: “Power supply utilities and electricity customers are becoming increasingly aware of the advantages that distributed energy resources can have for the network. These advantages can be maximized if a way can be found to optimize distributed power generators as integrated, dynamic resources in the network. To be able to offer this service, we looked for a high quality decentralized energy management system that had already proved its value in practice. With DEMS from Siemens we found exactly the system that met these requirements.”

Ralf Christian, chief executive officer of the Power Distribution Division in the Siemens Energy sector, said: “By cooperation with partners like Viridity we will jointly offer innovative smart grid solutions based on our DEMS and thus continue to demonstrate the capabilities of our system in the U.S., too.”

Using the Siemens decentralized energy management system, Viridity sets up virtual power plants adapted to the specific requirements of the operators. Energy efficient and ecological solutions for setting up smart grids are part of the Siemens environmental portfolio, with which the company earned revenues of around EUR19 billion in fiscal 2008.