So-called “virtual power plants” — networks of customer-owned assets that utilities can control as an alternative to building new traditional power plants — are the solution to a lot of the biggest problems facing the US power system.
Every home battery, smart thermostat, or plugged-in electric car offers a chance for utilities to either draw more electrons into the grid, or shave down peak demand. VPPs are becoming especially important as data centers, heat waves, and other factors drive demand up while costs, supply chains, and bureaucracy remain major impediments to quickly building new power infrastructure. And, as the federal government wipes out tax credits and other support for renewables, VPPs offer a way for residential solar-plus-storage systems to remain economically attractive for homeowners — who get paid for the withdrawn power — and technically viable for utilities. At the same time, to the extent that…
