A Virtual Power Plant is a platform that digitally connects thousands, and soon millions, of household’s electric appliances and other 'assets'.
What is a Virtual Power Plant (VPP)?
A virtual power plant or VPP combines equipment or assets installed at users' homes or businesses with a digital platform such as an app to create a network of connected assets.
These assets can include things such as electric vehicles (EVs), batteries, heat pumps and solar PV panels. By creating a connection between these assets, they are able to form a virtual network or power plant that can be switched on or off as a collective.
These assets can then be used to support the national electricity grid by helping to provide a form of flexibility, helping to maintain stability and providing a more efficient operation during peak times. They can do this by reducing large amounts of demand on the grid during peak times or when the grid is under pressure by collectively switching off.
This in turn allows greater integration of renewable energy while ensuring energy supply to all households and businesses for their daily activities, in the most cost-efficient way for everyone.