Virtual Power Plants Gain Momentum as U.S. States Seek Grid Solutions for Rising Energy Demand
By
Derek Harrison
Summary
Virtual power plants (VPPs) — networks of decentralized energy resources like home batteries, smart thermostats, and industrial demand-response systems — are gaining traction across U.S. states as a way to manage growing electricity demand. Massachusetts issued an executive order and Minnesota took regulatory action in 2024, signaling a shift toward aggregating distributed energy resources to stabilize the grid, reduce reliance on fossil fuel peaker plants, and support the clean energy transition. VPPs allow grid operators to call upon thousands of small-scale resources to send power or reduce consumption, functioning like a traditional power plant without centralized infrastructure.
Source
bskyVirtual Power Plants Gain Momentum as U.S. States Seek Grid Solutions for Rising Energy Demandinsideclimatenews.orgKey quotes
· 3 pulledA 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 traditional power plant.
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.
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