Solar Lattice

Concept

Virtual power plant

ID
concept:virtual-power-plant
IRI
https://solarlattice.org/kb/concept/virtual-power-plant
Status
active
Also known as
VPP, virtual multimegawatt power plant
Category
Market
Concept kind
market

A virtual power plant, or VPP, is a group of many small distributed systems that together act like one larger power plant. For example, small residential PV systems in some neighborhoods add up to virtual power plants of several megawatts. Commercial sites with battery storage can join a VPP and earn demand response revenue without disrupting their operations. VPPs are promoted as a way to avoid building new carbon-emitting generation, improve reliability and cut emissions across a community. Good monitoring and fault detection matter for a VPP: they help the grid manager forecast what the neighborhood will produce, raise its availability and lower its forced outage rate. Related concepts include demand response and distributed energy resources.

<!-- review notes

Claims

related_to

c1 drafted · lead Demand response

Joining a VPP lets the site earn demand response revenue.

c2 drafted · lead Distributed energy resource

Neighborhoods of small residential PV systems (distributed generation) add up to a virtual power plant several megawatts in size.

c3 drafted · lead Rooftop PV

Residential rooftop PV systems in a neighborhood add up to a virtual power plant.

c4 verified · fact Stem Inc proposed

Stem gives its partners access to its virtual power plant network.

verified by: review-workflowverified on: 2026-10-24

Referenced by

Data