Did you know about Virtual Power Plants? Your home may be part of one

The effects of climate change are becoming increasingly devastating. Still, our demand for energy keeps rising, so the world is looking for fast, cheap, and attainable clean power.

Replacing all non-renewable energy is a massive, expensive, and complex task. Still, one solution is to use the resources we already have. That is what Virtual Power Plants do.

Companies tap into individuals' power generation through home panels, batteries, and appliances.

According to Reuters, a VPP can connect thousands of homes under one electric power system. It doesn't have a physical plant; it is spread anywhere.

A VPP creates energy for the grid in two ways. One is tapping into the increasingly common home-based power sources: solar panels, batteries, or turbines.

The second way allows for any home to participate. VPP companies can access appliances like AC and EV chargers to reduce consumption and manage demand.

The Washington Post published a feature with real examples of how this works. The newspaper interviewed a Texan company and its users about how a VPP can tap into thermostats to assist the state's power grid.

According to the feature, Texas utilities reduced their power needs by 2.6 gigawatts on a high electricity demand day, saving the grid from crisis. This is the equivalent of a nuclear power plant.

Users can let companies access their homes in exchange for benefits, like money or reductions in their energy bills, so it is a win-win situation. Most of them don't notice the changes in their houses.

VPPs are growing worldwide, Reuters explained. They are becoming common in Australia, Japan, and Europe.

Reuters said many companies have tried the system. Examples include Norwegian Statkraft, Shell, which bought a VPP in Italy, German Next Kraftwerke, and Tesla Inc.

The news agency also pointed out that VPPs are significantly on the rise in the US, where companies have generated tons of gigawatts in moments of high demand.

In 2023, the Biden Administration pushed a regulation to ease access to VPPs, EVs, solar panels, and home batteries, so this power generation system will keep growing.

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