Reaching COP28 energy goals requires real VPP progress in 2024
This article was originally posted by Smart Energy International on 9th February 2024.Power grids globally must be upgraded by 2040 to keep the lights on. And while these upgrades will likely cost trillions, virtual power plants (VPPs), writes Autogrid’s Gisela Glandt, can curb these costs to the tune of $10B annually.
To fully utilise all the potential that VPPs can offer in the next few years, we’ll need a major strategy overhaul. While COP28 agreements to transition away from harmful fossil fuels and triple our collective renewable energy production by 2030 are noble, it will take intentional and strategic goalposts to help us get there.
To reach the targets set forth at COP28, we must accelerate global energy capacity and make progress as soon as this year in order to more than double our renewable capacity by the end of this decade. But here’s the good news: VPPs are one of the most effective—and as yet, largely untapped—tools that we can use on this journey.
In 2024, progress for VPPs will mean stakeholders taking initial steps towards promoting VPP adoption by both Programme teams and Energy Procurement teams, fostering customer engagement, developing supportive policies and regulations, and leaning into open standards.
Down the line, I see an increased adoption of devices and smarter homes, leading to a smarter grid, smarter cities, and ultimately smarter communities.
Making 2024 count – First steps
Climate conversations are now mainstream. With this increased attention to the energy transition, regulators and lawmakers will continue to push utilities to take faster action.
