Virtual power plants — VPPs — are emerging solutions to meet the world’s growing energy needs. Products such as electric cars have increased demand, while frequent temperature extremes strain the grid as people try to keep their homes and businesses comfortable. VPPs are decentralized small-to-medium-sized energy sources that are aggregated and managed to keep existing grids meet changing power requirements.
Using Distributed Power Sources to Help Meet Demand
One of the downsides of VPPs is that existing power regulations and state legislation do not accommodate this newer solution, so you must collaborate to update those frameworks. Some groups are already proposing ideas to overcome the existing landscape, where permissions for virtual power plants vary by location.
In one case, a nonprofit worked with two energy industry partners and a law firm to create a model tariff and legislation to standardize the availability of VPPs for those wishing to use them. Someone involved with the project clarified that there is a significant gap between virtual power plants’ potential and their actual deployments.
However, the goal is to work with lawmakers in four states with especially ambitious clean energy mandates. Virtual power plants could become widely used and provide measurable benefits, which should motivate you to do what is necessary to make this solution possible elsewhere.
The push for VPP may also be happening at a particularly good time because many U.S. households are taking advantage of the increasingly reasonable prices for products such as rooftop solar panels and battery backup systems. Those generate or store energy for users but could also improve grid management when you have more power than needed.
Department of Energy estimates suggest that using VPPs to handle 10%-20% of peak loads could save up to $10 billion in annual grid costs by 2030. However, deployments have to occur more rapidly to meet that goal. A reduction in legal red tape could make that happen.
Keeping Customers Engaged in a Clean Energy Future
The urgency of steadily transitioning to a future where you can meet power needs without depending on fossil fuels is a frequently discussed issue that captures headlines. Many world leaders have set net-zero targets and encouraged programs that make using renewable energy easier and more attractive. However, you might hear about associated matters that seem largely outside of your control. For example, experts believe it will cost billions of dollars to comprehensively upgrade the U.S. electricity grid.
The public may deal with the consequences if those updates happen too slowly but can do little or nothing to directly influence the outcomes. However, virtual power plants allow you to participate more meaningfully by using equipment you own to become part of a greener future. These decentralized solutions do not need fossil fuels because households’ clean, stored energy makes them work.
In one example, three companies are collaborating in Texas to create what could become the largest virtual power plant by the end of 2026. The thousands of participating homes collectively add 60 megawatt-hours, and that figure will grow each month. Each residence receives two remotely managed batteries that receive signals to charge or discharge based on factors such as solar generation levels, customers’ energy usage and electricity prices.
Parties overseeing the project believe it will provide customers with better energy stability to cope with ongoing power grid issues in the state. Participants should also feel encouraged that they are directly contributing to more sustainable solutions.
Highlighting Viable Options
Progress such as the examples here and elsewhere shows that although virtual power plants are still relatively new, they could address many existing grid challenges by giving utility providers new management options. Real-world use cases will help you discover which aspects work well and improve those with notable shortcomings.
About the author: Ellie Gabel is a science writer specialising in astronomy and environmental science and is the Associate Editor of Revolutionized.
Energy in Demand - Sustainable Energy - Rod Janssen 