GEN-I Group is addressing the unpredictability of wind energy generation, which is often misaligned with consumer demand, through its innovative virtual power plant service. By signing a flexibility purchase agreement with Energija Projekt, the owner of the Senj wind farm, this facility is now part of GEN-I’s advanced energy management system.
The virtual power plant connects a network of distributed energy sources, consumers, and storage facilities on a unified platform. This smart network adapts to the electricity distribution system’s conditions, providing value to energy source owners and enhancing the overall electricity system. By optimizing energy procurement and sales in the organized energy market, GEN-I enables plant owners to generate additional revenue while offering members of the virtual community reduced market access costs. The company extends these benefits to other parties interested in joining the virtual power plant.
Launched in 2015, GEN-I’s virtual power plant has steadily integrated new production sources and consumers. With the inclusion of Senj wind farm, it now manages over 100 distributed production units across five countries. A contract with the Croatian electricity transmission system operator HOPS has established GEN-I as an aggregator, making it one of Croatia’s largest aggregators, largely due to the contributions from Senj.
The virtual power plant enhances the stability of the power system by providing tertiary reserve services to HOPS, including negative tertiary reserve. This management approach increases network stability and reliability, enabling quick responses to fluctuations, reducing outages, and ensuring a reliable electricity supply. The virtual power plant is vital for managing peak energy demand and strategically distributing stored energy, while also offering local flexibility services, such as voltage regulation.
GEN-I continuously upgrades its virtual power plant with new software tools and stable stakeholder connections. Advanced algorithms ensure that numerous distributed devices operate harmoniously without manual intervention during real-time operations.
In addition to the virtual power plant, GEN-I and Energija Projekt have established a Power Purchase Agreement (PPA) for Senj wind farm. This contract guarantees market access for the electricity generated by the wind farm, providing the necessary trading infrastructure, a predetermined price for a specific period, and mechanisms for balancing surpluses and shortages. This ensures a stable and predictable income for Senj, mitigating financial risks associated with energy price fluctuations.
Recently, Energija Projekt, which is majority-owned by Chinese Norinco International Cooperation, announced that its 156 MW Senj wind farm has received approval for permanent commercial operations. This project represents one of the largest Chinese investments in Croatia and ranks among the largest wind farms in the country. While it began trial operations in December 2021, it only received its operational permit in July 2024 after overcoming challenges related to noise levels from its turbines.
