What are virtual power plants?
Virtual power plants (VPPs) are decentralized networks that aggregate and manage various distributed energy resources (DERs) such as solar panels, wind turbines, battery storage systems, and demand response units. By combining these resources, VPPs can operate as a single, flexible power plant, delivering electricity to the grid or providing ancillary services.
The main benefits of virtual power plants include:
1. Efficiency: They optimize the use of renewable energy sources and reduce reliance on fossil fuels.
2. Grid Stability: VPPs can help balance supply and demand, contributing to grid stability and reliability.
3. Cost-Effectiveness: By pooling resources, VPPs can lower energy costs for consumers and reduce the need for expensive peak power generation.
4. Scalability: They can easily integrate new resources as they become available, making it possible to adapt to changing energy needs.
5. Financial rewards: Most programs will pay the homeowner and aggregator for each event that they participate in, otherwise known as "opt into".
Where are VPP programs currently happening?
Currently, Puerto Rico and 19 states all have VPP programs. At the time of writing this, Canada does not have any VPP programs yet. The map below shows which states have programs.
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