Virtual Power Plants

A virtual power plant is a centralized energy distribution system that can be controlled remotely. It is made up of many small energy sources like solar panels and batteries.

Essentially, with VPPS, individual buildings can operate as their own power plant. VPPs are similar to microgrids however, according to Green Tech Media, they differ in a few key ways:
- VPPs are connected to the grid whereas microgrids are often off-grid
- VPPs can be connected to any part of the grid whereas microgrids are confined to certain locations

VPPs are integral to our renewable energy transition because they reduce dependence on the legacy grid.

According to Climate Tech VC, they allow us to produce and store clean energy on-site and dynamically control in-house demand based on real-time pricing signals.

Having this information can allow consumers to lessen their energy consumption during peak demand times, reduce their energy rate, and sell energy back to the grid.

Companies like Ormat Technologies, Hanwha Q Cells, Generac Power Systems, Fluence, and Green Mountain Power, and many more companies are helping make energy local!