Unlocking the Benefits of Virtual Power Plants

This technical report discusses the concept of Virtual Power Plants (VPPs) and their role in modern energy systems. It outlines how VPPs aggregate distributed energy resources (DERs) such as rooftop solar, battery storage, and electric vehicles to provide load flexibility and support grid operations. The report highlights the potential economic benefits of VPPs, including reduced construction costs for new power plants and the ability to sell excess power capacity in energy markets. It also addresses the challenges utilities face in deploying VPP technology, emphasizing the need for effective integration with existing systems and organizational change management. The report presents a phased approach for utilities to implement VPPs, starting with clear objectives and a pragmatic deployment strategy. Furthermore, it details the importance of digital technologies, such as Distributed Energy Resource Management Systems (DERMS), in optimizing VPP operations. The report concludes by emphasizing the necessity of VPPs for enhancing grid reliability and resiliency in the face of increasing complexity in energy generation and consumption.