How to Put the Power Plant in a VPP
Neil Veilleux is Senior Director of Market Development and Regulatory Innovation, and Gisela Glandt is Vice President for Virtual Power Plants at Uplight. Brien J. Sheahan is a former Chairman and CEO of the Illinois Commerce Commission and Chairman of the NARUC Task Force on Innovation.
Growing interest in virtual power plants (VPPs) stems from their potential to revolutionize the energy sector by aggregating distributed energy resources (DERs) like smart thermostats, household appliances, solar panels, batteries, and electric vehicles into robust networks managed in real-time.
These innovative technologies have the potential to offer ratepayers significant savings, enhance grid stability and efficiency, and integrate renewable energy. As the demand for sustainable solutions and concern for affordability grow, VPPs offer a promising path to a more affordable, resilient, decentralized, and cleaner energy system.
According to The Brattle Group, VPPs could save utilities fifteen billion to thirty-five billion dollars in capacity investment over ten years. Similarly, the U.S. Department of Energy estimates that VPPs could meet about ten to twenty percent of peak demand by 2030, displacing fossil fuel peaking power plants, and industry leaders note that VPPs can bring significant, new cost savings to ratepayers.