Technology
A Virtual Power Plant (VPP) is an aggregated network of decentralized, small-scale energy resources (such as rooftop solar panels, battery storage systems, electric vehicles, and demand response capabilities) that are coordinated through software to operate as a unified power source. By pooling these resources, a VPP can deliver power or reduce load on demand, providing grid services similar to a traditional power plant. For instance, thousands of home batteries can be instructed to discharge together during a peak demand event, supplying electricity to the grid. VPPs increase the flexibility and reliability of the grid by smoothing out the variability of renewable energy and responding quickly to balance supply and demand. They also enable owners of distributed resources to earn revenue by participating in energy markets or utility programs.