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What is a virtual power plant?
What is a virtual power plant?

An orchestra of energy resources🎻

Jason Badeaux avatar
Written by Jason Badeaux
Updated over a week ago

The energy grid is one massive real-time system. The grid needs to balance supply of and demand for electricity at all times. This balance is difficult to maintain, and becoming more complex as we increase the amount of renewables on the grid.

Virtual power plants (VPPs) are an emerging resource for energy grids to help balance the system. VPPs are networks of distributed energy resources, such as solar panels, batteries, EV chargers, and hot water heaters, that are linked together through software and dispatched as a single resources to support the grid. They basically act as one big community-owned power plant!

VPP networks are like maestros, using software to control and manage their symphony of distributed energy resources. By coordinating these resources, a VPP can optimize energy production and storage, ensuring all the instruments play together in perfect harmony.

VPPs can provide valuable services to the grid like load balancing and frequency regulation. By intelligently managing distributed energy resources, VPPs can help maintain the stability of the grid, especially during times of high demand or when renewable energy production varies due to weather conditions. This means a more resilient and efficient energy system for everyone!

For consumers, virtual power plants offer plenty of benefits too. By participating in a VPP, homeowners and businesses with distributed energy resources can earn money by providing services to the grid. It's a win-win situation, as consumers can lower their energy bills while contributing to a greener, more sustainable energy future.

All distributed energy resources deployed through Daylight are connected to our VPP by default. As a customer, you can customize how you'd like to contribute through our app. You can opt out of the VPP, but you'll forfeit your cashback incentives for doing so.

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