Understanding Virtual Power Plants (VPPs)

Virtual Power Plants (VPPs) consist of various distributed energy resources, such as rooftop solar panels, home batteries, electric vehicle chargers, and smart appliances, combined to function like a single power plant. They enable households to generate, store, and manage energy in real time, which allows for more efficient energy use on the grid. VPPs can reduce reliance on traditional gas peaker plants, especially during peak energy demand times, ultimately leading to cost savings and improved grid stability. As more distributed energy resources come online, the potential value and operational capacity of VPPs grow substantially.