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Analysts Highlight Challenges and Potential of Virtual Power Plants as North America Approaches 500 Installations by Mid-2023.

Virtual power plants (VPPs) can be scaled to their full potential with improved control technologies, streamlined communications and customer-engaging compensation, according to analysts. The Department of Energy estimates that by mid-2023, North America will have over 500 of these types of VPPs with up to 60 GW of total capacity. However, these challenges are acknowledged as being real and are only beginning to be addressed. Scaling VPP will likely impose new costs for operations technologies and require new planning processes to recognize the value of the flexible DER elements, and require system standardizations. There are no recognized communications standards to streamline their response to demand for load reductions or system stability services.

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