Virtual Power Plants Could Really Help California Meet Peak Demand


New research reveals virtual power plants (VPPs) could meet 15% of peak demand - 5x the existing capability - by using commercially available technologies to provide affordable and reliable power. That analysis comes via GridLab, a non-profit that provides comprehensive technical expertise to policy makers, advocates and other energy decision makers. The group's latest report,... View Article
Solar Builder Magazine 8:06 pm on April 17, 2024


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The text discusses a report by GridLab, a non-profit organization, which highlights the potential of Virtual Power Plants (VPPs) in California to meet peak demand and provide affordable and reliable power. VPPs utilize consumer technologies like smart thermostats, behind-the-meter batteries, residential electric vehicle charging, grid-interactive water heating, and automated demand response systems for large buildings and industries. By 2035, the report estimates VPPs could create consumer savings of $550 million per year, meet over 15% of peak demand (five times current DR capacity), reduce risks associated with interconnection delays, and scale flexibly as demand grows.

  • Virtual Power Plants (VPPs) can meet 15% of California's peak demand by using commercially available technologies like smart thermostats and behind-the-meter batteries.
  • The report shows VPPs could create consumer savings of $550 million per year and reduce utility bills in the face of rising energy costs.
  • VPPs can provide critical support for grid reliability and reduce risks associated with interconnection delays and uncertainty in electricity demand forecasts.
  • The potential impact of VPPs on California's energy transition over the coming decade is too significant to ignore.
  • Barriers to achieving VPP potential include initiatives to overcome those challenges, which will be worth the effort.

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