Factor This California utility reflects on learnings from the largest virtual power plant test in US history
Sep 8, 2025
Kendrick Li, who manages demand response for Pacific Gas and Electric Company, shares insights on California's groundbreaking virtual power plant test. He details how thousands of distributed energy systems combined to deliver an impressive 535 megawatts during peak demand. The conversation uncovers how virtual power plants can stabilize the grid, the importance of customer adoption of battery technology, and the potential of AI in optimizing energy management. Kendrick also discusses the roadblocks to broader participation in these innovative programs.
AI Snips
Chapters
Transcript
Episode notes
VPPs Shape Demand To Match Supply
- A virtual power plant (VPP) manipulates aggregate load to match intermittent supply rather than only adding generators.
- VPPs shape demand up or down to align with renewable generation and stabilize the grid.
Historic July 2025 Two‑Hour VPP Test
- In July 2025 PG&E coordinated with other California utilities and providers to discharge behind-the-meter batteries for a two-hour test.
- The combined fleet delivered just over 500 megawatts, nearly half a nuclear reactor's output.
Instantaneous Dispatch Changes Grid Dynamics
- Battery VPPs respond machine-to-machine and switch nearly instantaneously when dispatched.
- That instant action is powerful but requires ramping considerations as scale grows.