How virtual power plants are shaping tomorrow’s energy system
This article was originally posted by MIT Technology Review on 7th February 2024.
By orchestrating EVs, batteries, and smart home devices, VPPs can help make the grid cleaner and more efficient.
For more than a century, the prevalent image of power plants has been characterized by towering smokestacks, endless coal trains, and loud spinning turbines. But the plants powering our future will look radically different—in fact, many may not have a physical form at all. Welcome to the era of virtual power plants (VPPs).
The shift from conventional energy sources like coal and gas to variable renewable alternatives such as solar and wind means the decades-old way we operate the energy system is changing.
Governments and private companies alike are now counting on VPPs’ potential to help keep costs down and stop the grid from becoming overburdened.
Here’s what you need to know about VPPs—and why they could be the key to helping us bring more clean power and energy storage online.
What are virtual power plants and how do they work?
A virtual power plant is a system of distributed energy resources—like rooftop solar panels, electric vehicle chargers, and smart water heaters—that work together to balance energy supply and demand on a large scale. They are usually run by local utility companies who oversee this balancing act.
