The clean energy transition is progressing globally, with virtual power plants, which are aggregations of managed energy resources such as rooftop solar and storage, poised to emerge as a critical resource. Between 2023 and 2030, U.S. electricity demand may increase by 200 GW due to electrification, according to the recent Department of Energy VPP Liftoff report. As DOE identifies, flexible distributed energy resources could expand by 80 GW to 160 GW to cost-effectively offset much of this increase. VPPs can reliably provide grid services for the bulk power system and to optimize the distribution grid. Expanding the use of VPPs could avoid about $10 billion in annual grid costs.
