These terms describe overlapping but different scopes. A microgrid coordinates a defined electrical system; a VPP coordinates distributed resources for services. DERMS addresses network/resource interactions, while an EMS manages energy within its scope. Product boundaries vary, so document functions rather than relying on names.
Draw the asset-control, network-security and commercial-settlement responsibilities separately.
Determine whether a service is for the site, the local network, the energy market or system operation.
Local protection and safety limits retain priority over market dispatch. Aggregation does not create islanding or grid-forming capability.
02
Available flexibility: MW, MWh and time
A resource can provide only the response that remains available from its actual operating point. Battery power, energy, duration, response speed, connection limits and operating permissions constrain different parts of the service.
Use a signed power convention. For a simple discharging case, upward headroom equals the validated discharge ceiling minus current discharge.
Translate SOC and EOL capacity into delivered AC energy. Ring-fence site reserve before offering market capacity.
Check telemetry, communications loss, asset availability, duration and recharge/rebound. A service must satisfy all binding limits.
03
Market eligibility, settlement and contracts
Potential value becomes revenue only through an eligible programme, a valid contract and measured delivery. Australia and Singapore illustrate different development paths; historical demonstrations and sandboxes do not establish a universal APAC participation rule.
Confirm current rules for the country, service, asset class and participating entity. Retain dated written confirmations.
Trace baseline, metering, availability, performance, fees, penalties and dispute rules through a sample settlement.
Model net incremental value after degradation, extra energy, fees and foregone site benefits; check for double counting.
Reviewed 25 October 2026. Teaching derivations and project methods are original; the following sources provide background and do not replace project-specific requirements.