How does a virtual power plant work?

A virtual power plant connects energy systems across neighborhoods to work together like one big power plant. Here’s a simplified version of how it works: Energy production: Energy devices (like solar panels) create electricity. Energy storage: Energy storage devices (home batteries or even EVs) store that electricity for later use.

What is a virtual power plant (VPP)?

The “virtual” nature of VPPs comes from its lack of a central physical facility, like a traditional coal or gas plant. By generating electricity and balancing the energy load, the aggregated batteries and solar panels provide many of the functions of conventional power plants. They also have unique advantages.

Why are virtual power plants more resilient than centralized generating stations?

Virtual power plants are more resilient against service outages than large, centralized generating stations because they distribute energy resources across large areas. Virtual power plants aren’t new. The U.S. Department of Energy estimates that there are already 30 to 60 gigawatts of them in operation today.

How do I participate in a virtual power plant?

In order to participate in a virtual power plant, your system must be connected to the power grid. Learn more about the difference between on-grid vs. off-grid solar systems. VPPs can help to advance many of the goals for the power grid, from providing more reliable power to consumers to making energy more efficient and affordable.

What are the benefits of a virtual power plant?

The benefits VPPs can provide to the grid are so great that utility companies often pay handsomely for the services they provide. Homeowners with smart thermostats and/or rooftop solar and batteries can sign up with an aggregator to become part of a VPP, potentially earning up-front and ongoing incentive payments. What is a virtual power plant?

Are virtual power plants better than new power plants?

Virtual power sources typically are quicker to site and build, and can be cleaner and cheaper to operate, than new power plants. Virtual power plants are more resilient against service outages than large, centralized generating stations because they distribute energy resources across large areas. Virtual power plants aren’t new.