Virtual Power Plants: The Taylor Swift of Modern Energy

Source: Elisa Wood | · ENERGY CHANGEMAKERS · | November 9, 2023

When I first wrote about virtual power plants (VPP) in 2014, it was a mystery term applied to an energy efficiency project in my town. A decade later, virtual power plants are to energy nerds what Taylor Swift is to music fans — the big star on the platform.

The Rocky Mountain Institute said VPPs “may be our most important and most overlooked domestic energy resource.” The Brattle Group, in a study for Google, found that 60 GW of virtual power could save society $15–$35 billion. A Forbes headline said they’ve gone from “geek to must-have chic.”

One of the most persuasive advocates of the technology is Jen Downing, senior advisor in the Department of Energy’s (DOE) Loan Programs Office. I heard Downing speak at Dervos 2023, a conference held by the DER Task Force on November 9 in Brooklyn, NY. I also caught her presentation at RE + 2023 via YouTube. She is the lead author of the DOE’s new liftoff report on virtual power plants.

By comparing virtual power plants to sandwiches, Downing offered insight into why they are having a moment — or maybe a decade or more. Both can contain many different fixings and still be what they are. It’s an insightful analogy because it points to how we can move toward a decentralized grid efficiently or wastefully.