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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

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

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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Research Nadia Smith Research Nadia Smith

IEEFA: Virtual power plants are the future of electricity retailing

As Australia surpasses three million rooftop solar installations, households looking to buy a battery storage system or electric vehicle can be part of a new kind of power plant bringing about faster, cheaper decarbonisation. In the future, so-called ‘virtual power plants’ that harvest distributed renewable electricity and demand response will play a major role, says a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).


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News Nadia Smith News Nadia Smith

Electric-vehicle virtual power plant scales up in UK with funding

The UK’s first electrically-chargeable vehicle (EV) virtual power plant (VPP), run by ev.energy, has been awarded an additional £295,000 (€352,000) in funding, taking its total finance pot to £754,000. Provided by Innovate UK, the money will be used to scale the VPP, which will help stabilise the country’s power grid as electromobility accelerates.


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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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