Are Virtual Power Plants the Solution to the Grid’s Energy Crisis?
This article was originally posted on Microgrid Knowledge on 14th August 2024.Virtual power plants have emerged as one of the leading solutions to decarbonizing the grid and meeting explosive demand for electricity. While they offer many potential benefits, not everyone is sold on the technology being the best path forward.
It is no great secret that the U.S. electric grid must address a trifecta of critical issues in the coming years.
First, there’s the rapid retirement of the country’s aging fleet of traditional power plants. The U.S. aims to retire 5.2 GW of capacity this year alone, 91% of which will come from shuttered coal and natural gas plants. Close to 5 GW of U.S. nuclear power capacity has been retired since 2017, according to the U.S. Energy Information Administration.
Second, utilities are facing increased pressure to decarbonize and integrate more renewable energy resources.
Last, but certainly not least, there’s an impending explosion in demand for electricity. The U.S. Department of Energy (DOE) predicts coincident peak demand will rise by around 60 GW between 2023 and 2030.
