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What is a virtual power plant?

A virtual power plant is a network of energy devices, like rooftop solar, batteries and EVs, that are pooled together to serve the grid. With participants approval the devices can be called on by system operators to share, reduce and store electricity. VPPs are capital and cost-efficient choice for utilities, creating new revenue streams that also benefit consumers, while reducing the overall cost of the electricity system.

recent Explainers

Explainers Nadia Smith Explainers Nadia Smith

Rooftop solar Distributed Power Plants: A better way to generate electricity

Connecting a large amount of solar and battery systems together is called a Distributed Power Plant (DPP for short. It’s also called a Virtual Power Plant). You can think of this as a power plant that is in many places at once. Below we’ll explain why they’re needed, how they work, and action you can take to bring them to your community.

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Explainers Nadia Smith Explainers Nadia Smith

Podcast: Could VPPs save rooftop solar?

In this episode, Shayle talks to Jigar Shah, director of the Loans Programs Office at the U.S. Department of Energy. Jigar argues that the rooftop solar industry should reinvent itself, relying on batteries and virtual power plants (VPPs). He also argues that regulations should focus on system-level dispatchability. 

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Explainers Nadia Smith Explainers Nadia Smith

What are ‘Virtual’ Power Plants

This video explainer was published by Reuters on 12 January 2023. "Companies including GM, Ford and Google say they want to work together to scale up the use of virtual power plants, which are positioned for explosive growth in the United States and could help balance the supply and demand of energy."

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Explainers Nadia Smith Explainers Nadia Smith

The Pathway to VPPs: Commercial Liftoff

Deploying 80-160 GW of virtual power plants (VPPs) by 2030 could expand the US grid’s capacity to reliably support rapid electrification while redirecting grid spending from peaker plants to participants and reducing overall grid costs.

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