What is a virtual power plant?

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

How does a Virtual Power Plant (VPP) system work?

In a Virtual Power Plant (VPP) system, customers both consume power and contribute it back to the grid. This dual role can improve their understanding of the grid and get them more invested in the transition to clean energy.

Do virtual power plants have a physical presence?

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).

How can virtual power plants contribute to China's decarbonization goals?

The sector's flexible resources include air conditioning, building rooftop photovoltaics, power storage and EVs. Virtual power plants are poised for big growth to address challenges posed by increased grid-connected renewable energy systems, and contribute to China's decarbonization goals, according to a recent report.

What is the main characteristic of virtual power plants?

Welcome to the era of virtual power plants (VPPs). Many may not have a physical form at all. For more than a century, the prevalent image of power plants has been characterized by towering smokestacks, endless coal trains, and loud spinning turbines.

Can VPPs reduce energy bills?

Virtual power plants (VPPs) can lower energy bills for consumers in addition to reducing emissions. Research suggests that leveraging distributed sources during peak demand is up to 60% more cost effective than relying on gas plants.