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), such as solar panels, wind turbines, battery storage, and flexible loads, to optimize energy generation, consumption, and grid services. It uses software and communication technologies to coordinate these decentralized assets, enabling them to function as a single, reliable power plant that can participate in electricity markets and provide grid stability. VPPs enhance grid resilience, integrate renewable energy, and support demand response by balancing supply and demand in real-time.
Developers should learn about VPPs when working on smart grid, renewable energy integration, or IoT-based energy management systems, as they are crucial for modernizing electricity infrastructure and achieving decarbonization goals. This knowledge is essential for building scalable energy platforms, implementing demand-side management, and developing algorithms for optimizing distributed energy resources in applications like microgrids, electric vehicle charging networks, and utility-scale energy storage projects.