Virtual Power Plant
A Virtual Power Plant (VPP) is a cloud-based distributed power system that aggregates the capacities of heterogeneous distributed energy resources (DERs) like solar panels, wind turbines, battery storage, and electric vehicles to optimize electricity generation and grid services. It uses software and communication technologies to remotely control and coordinate these assets, functioning as a single, flexible power plant to balance supply and demand, enhance grid stability, and participate in energy markets. VPPs enable utilities and grid operators to manage renewable energy integration, reduce peak demand, and improve reliability without building new physical infrastructure.
Developers should learn about VPPs when working on smart grid, renewable energy, or IoT projects that involve distributed energy management, as they are crucial for modernizing electricity systems and supporting decarbonization goals. Use cases include developing control algorithms for DER aggregation, creating platforms for demand response programs, or building applications for real-time energy trading and grid balancing in markets like frequency regulation or capacity reserves. This skill is valuable in industries such as energy tech, utilities, and sustainability-focused startups.