Virtual Power Plants
The Future of Clean Energy
Conquer grid capacity and resiliency challenges faster, more sustainably, and more cost-effectively than ever before.
A Virtual Power Plant (VPP) is an aggregation of distributed energy resources that provides grid services as a single entity. In coordinating DERs across multiple customers and sites, a VPP can respond to grid imbalances of varying degrees and durations, thereby providing more collective flexibility to the grid than a single DER would by itself. It can include commercial and/or residential DERs and may be composed of a single type of resource or a mix.
VPPs provide resource adequacy and environmental benefits at a significantly lower price point than other options, such as gas peaker plants and grid-scale battery storage.
A benefit-cost analysis concluded that the net cost of VPPs is 40% lower than that of a gas peaker plant, and 60% of a utility-scale battery storage system.
Ultimately, VPPs provide cost savings of $15 billion to $35 billion compared to alternatives.*
* The Brattle Group: Real Reliability – The Value of Virtual Power (May 2023)
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