Virtual Power Plants (VPPs) are seen by many as the key to controlling energy costs for enterprises. With the growth in distributed energy sources and connected devices, VPPs are becoming an attractive option. It is estimated that the global VPP market will exceed $6 billion by 2028. These market projections are fueled by the growth of connected distributed energy sources, investments in distributed energy resources and EV purchases, and the need for reliable sources of affordable power and clean energy.
VPPs involve aggregations of interconnected renewable energy sources such as solar, storage, grid-interactive efficient building equipment, EV chargers, and climate control components. By combining these sources with efficient technology, companies can reduce their energy costs as well as provide backup during adverse grid events.
Businesses are already reaping the benefits of VPPs. In California in the summer of 2022, Tesla powerwall customers were paid for excess energy sent back to the grid during an extreme heatwave. The U.S. Loan Programs Office is also supporting the growth of DERs and VPPs, as is the Consumer Electronics Show (CES), which highlighted the protocol “Matter” for connecting compatible devices and systems.
The introduction of electric vehicles (EVs) is playing a large part in the growth of virtual power plants. With over 25% of new car buyers considering an EV purchase, electric car batteries can provide two days’ worth of energy for an average U.S. household. And with Ford, GM, Google, and solar producers committing to establish standards to scale up the use of virtual power plants, the enterprise VPP market is burgeoning. Furthermore, utilities can reduce their peak-time costs with VPPs, which defer the need for expensive infrastructure.
The technology industry is exploring ways to gather data to improve the software and artificial intelligence (AI) to better collect and use data from distributed energy sources. From running dishwashers during non-peak hours to EV charging during nighttime hours, Companies must optimize their energy sources to make sure they’re not left behind.
The company mentioned in this article is Tesla, an American electric vehicle and clean energy company. Tesla is widely recognized for creating electric vehicles and battery products with a mission to accelerate the world’s transition to sustainable energy. Tesla was the first to market with the most energy efficient vehicles to date, an aim that is continued with the Ford F-150 Lightning.
The person mentioned in this article is Elon Musk, founder of Tesla and co-founder of PayPal. As the chief engineer at Tesla, Musk has changed the way the world looks at electric vehicles, making them attractive and revolutionary. He has also made a personal commitment to sustainable energy, and as such, popularized solar for homes, deployed innovative energy storage solutions, and funded research into AI and space exploration. Musk has proven to be an influential leader in the usage of distributed energy sources, working and promoting VPPs while aiming to increase consumer convenience and efficiency on a global scale.
