What is VPP?

Virtual Power Plant (VPP) is an energy system that combines multiple distributed, decentralized energy sources, such as PV panels, wind turbines, batteries, other renewable energy resources, and demand response systems into a single, integrated virtual power plant. This allows the VPP to work as a single power plant, with its own generation and storage capability, and competes in the energy market as a single unit, capable of supplying the grid with electricity based on variations of locations and demand.

Why use a VPP?

VPP’s are useful as they allow for more flexibility and stability with the grid, as we are using distributed energy sources spread throughout the grid, rather than have large, centralized energy power plants. This decentralization allows for a more flexible response to fluctuations in demand and supply, especially with the integration of energy storage systems with the energy sources, and the optimized use of energy management software that connects all components of the VPP together, and manages them to work as a single unified unit. VPP’s can also allow for easier incorporation of renewable energy systems into the grid, thus helping to diversify the energy mix of the grid, and making it more resilient and reliable in the events of grid disruption and/or emergencies, as these diverse, decentralized energy systems along with their storage units can provide backup power and supply critical services in key infrastructures to maintain continuity of operation.