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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

News Nadia Smith News Nadia Smith

Texas leads VPP adoption with deregulated market

Texas is uniquely suited to adopt virtual power plant (VPP) technology due to its competitive, deregulated market. Its success highlights the “perverse incentive” of vertically integrated utilities in other US states to make capital expenditures without discretion to raise profits.

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News Nadia Smith News Nadia Smith

GM Energy Has A Broad Vision Including Vehicles, Stationary Storage, Solar, & VPP

GM Energy, a new business unit of General Motors, focuses on offering batteries, EV chargers, and software to residential and commercial customers. The company has recently introduced the Ultium Home product suite, which includes energy storage, solar panels, and bi-directional charging equipment. These products enable vehicle-to-home (V2H) and vehicle-to-grid (V2G) capabilities, allowing electric vehicles to power homes during blackouts or to provide energy back to the grid. GM Energy aims to expand its energy management services to mitigate the effects of power outages and provide cost-effective energy solutions for customers.

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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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News Nadia Smith News Nadia Smith

PG&E trials V2X for public shutoff backup power

PG&E, Kaluza and Wallbox are partnering on an EV and V2X programme in California, which will use dynamic tariffs to reward customers for providing surplus power back to the grid during public safety power shutoff events.

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Research Nadia Smith Research Nadia Smith

Virtual Power Plants (VPPs) Could Save US Utilities $15-$35 Billion in Capacity Investment Over 10 Years

A new study prepared for Google by energy analysts from The Brattle Group explores the cost and ability to serve critical resource adequacy needs from an emerging resource: virtual power plants (VPPs). These distributed energy resource (DER) portfolios – which can include technologies such as rooftop solar, smart thermostats, smart water heaters, electric vehicles, and distributed batteries – are actively controlled by utilities and energy service providers to benefit consumers, the power system, and the environment.

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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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