In the electricity power industry, ranging from petroleum, gas, coal and nuclear power, balancing supply and demand is crucial to maintaining a reliable electric grid. As the world increasingly focuses on renewable energy, Distributed Energy Resources, and electrification, Virtual Power Plants (VPPs) are garnering more attention, especially in the US. These VPPs present an innovative solution, enabling local grid operators to use energy flexibility to ensure a more stable electricity supply, improved energy efficiency, and enhanced grid capacity.
Swell Energy and SunPower, members of OpenADR, are important players in the transformative shift, having established VPPs that offer new value to utilities and their customers. A VPP is defined as a cloud-based network with a decentralized multi-asset ecosystem consisting of Distributed Energy Resource (DERs)—such as batteries, EVs, smart plugs and thermostats. Controlled by grid operators or third party aggregators, these resources can be monitored, forecasted and optimized with bi-directional communications between components for a more efficient and resilient power grid. VPPs are proving to be a key resource capable of providing resource adequacy and other grid services at a negative net cost to the utility.