What is a virtual power plant?

A virtual power plant is a system of distributed energy resources—like rooftop solar panels, electric vehicle chargers, and smart water heaters—that work together to balance energy supply and demand on a large scale. They are usually run by local utility companies who oversee this balancing act.

Are virtual power plants a good idea?

Governments and private companies alike are now counting on VPPs’ potential to help keep costs down and stop the grid from becoming overburdened. Here’s what you need to know about VPPs—and why they could be the key to helping us bring more clean power and energy storage online. What are virtual power plants and how do they work?

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.

Does Sonnen have a virtual power plant?

Fully acquired by Shell in 2019, sonnen also operates virtual power plants in the USA, Australia and Italy. Earlier this year saw company join the VP3 alliance in the US, which hopes to develop and scale up VPP technology. sonnen's virtual power plant (VPP) has reached capacity of 250MWh, claiming to be the largest in Europe to date.

Do virtual power plants have a physical form?

For more than a century, the prevalent image of power plants has been characterized by towering smokestacks, endless coal trains, and loud spinning turbines. But the plants powering our future will look radically different—in fact, many may not have a physical form at all. Welcome to the era of virtual power plants (VPPs).

Can solar power be used to supply electricity back to the grid?

But because solar and battery technology has evolved, utilities can now use them to supply electricity back to the grid when needed. In the United States, the Department of Energy estimates VPP capacity at around 30 to 60 gigawatts. This represents about 4% to 8% of peak electricity demand nationwide, a minor fraction within the overall system.