What is a virtual power plant?

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

What is a virtual power plant (VPP)?

The “virtual” nature of VPPs comes from its lack of a central physical facility, like a traditional coal or gas plant. By generating electricity and balancing the energy load, the aggregated batteries and solar panels provide many of the functions of conventional power plants. They also have unique advantages.

Why is virtual power plant management important?

Thus, it has become increasingly important to enhance management capabilities regarding the aggregation of distributed electricity production and demand through different types of virtual power plants (VPPs). It is also important to exploit their ability to participate in electricity markets to maximize operating profits.

Do virtual power plants have a physical form?

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).

What are the different types of virtual power plants?

There are two types of VPPs that are distinguished by the objective of their aggregation: commercial virtual power plants (CVPPs) and technical virtual power plants (TVPPs). First, CVPPs fundamentally focus their operation on participation in the electricity market by optimizing the production and electrical demand of their components.

Is Sonnen the largest power plant in Europe?

Germany-headquartered and Shell-owned sonnen has announced that its virtual power plant (VPP) has reached capacity of 250MWh, claimed to be the largest in Europe to date. The VPP consists of tens of thousands of sonnenBatteries throughout Germany, states sonnen, which are intelligently controlled and can be used as large-scale storage.