As Energy Demand Rises, More States Turn to Virtual Power Plants
Key takeaways
- A virtual power plant, or VPP, is a network of resources that a central controller can call upon to send power to the grid or to reduce demand on it.
- With a few clicks, hundreds or thousands of points in a network can behave like a power plant, with compensation for the resource owners.
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As Energy Demand Rises, More States Turn to Virtual Power Plants. The decentralized power systems are playing a growing role in the transition away from fossil fuels. By Dan Gearino June 4, 2026 Share This Article Republish. A worker with Base Power installs a home battery system that can send energy back to the grid during peak times in Houston on Feb. 18, 2025. Credit: Brett Coomer/Houston Chronicle via Getty Images Related California’s Battery Array Is as Powerful as 12 Nuclear Power Plants. Here’s What’s on the Horizon. California’s Climate Leaders Talk Clean Energy Growing Pains and the War on Iran Virtual Power Plants Showed Up for Their Biggest Test Yet. Here Are the Results Share This Article Republish Most Popular An Iowa Town Spent $800,000 on a New Well. It Pumps Undrinkable Water. Colorado River Faces ‘Devastating Consequences’ If Another Dry Winter Lands, Experts Warn EPA Rollbacks Could Raise AC, Refrigeration Costs Despite Promise of Lower Prices An executive order in Massachusetts and a regulatory commission action in Minnesota are among the big moves this year that highlight the growing role of virtual power plants in grid management.
A virtual power plant, or VPP, is a network of resources that a central controller can call upon to send power to the grid or to reduce demand on it. Examples include batteries in homes and businesses as well as factories that can ramp down their power use when needed.
With a few clicks, hundreds or thousands of points in a network can behave like a power plant, with compensation for the resource owners. It’s a cheaper and cleaner way to provide short-term electricity than the main alternatives, such as natural gas peaker plants.