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Virtual power plant

technology Maturity 5-7 Next article →

A virtual power plant, or VPP, is a clever way to make electricity. Instead of one big building, it uses many small parts. These parts are called distributed energy resources. They can be solar panels on a house. They can be wind fans or batteries in cars. A smart computer system connects them all. It makes them act like one single power plant.

This system helps keep the lights on. It works by balancing supply and demand. Supply is how much power we make. Demand is how much power people use. During busy times, the VPP can give off extra power. This is called peak shaving. It helps avoid using expensive plants. This can save 40 to 60 percent in costs.

Some VPPs use batteries to work very fast. They can react in just seconds. This helps the grid stay steady. In the United States, VPPs are growing fast. In 2023, they made up about 4 to 8 percent of peak demand. In Europe, companies like Enpal and Entrix are building even larger ones. They use solar, batteries, and electric vehicles to help.

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