VPP Policy Principles

The document outlines the role of virtual power plants (VPPs) in aggregating distributed energy resources (DERs) to provide utility-grade services and argues that strong policy and regulation are essential to scale these benefits over the next one to four years.

• Virtual power plants (VPPs) function as aggregations of distributed energy resources (DERs)—such as rooftop solar, batteries, electric vehicles, and smart thermostats—that can balance electrical loads to provide utility-scale services, offering cost-effective grid solutions for operators and bill savings for customers.
• To scale VPPs, a foundation of strong policy and regulation is required to manage their integration, valuation, and compensation. These principles are intended to guide decisions over the next one to four years regarding legislation, utility business model reforms, wholesale market participation, and integrated distribution system planning.

APA

RMI (2024). VPP Policy Principles. https://rmi.org/resources/vpp-policy-principles/

Chicago

RMI. VPP Policy Principles. 2024. https://rmi.org/resources/vpp-policy-principles/.

Wikipedia

{{cite report |author=RMI |title=VPP Policy Principles |date=22 February 2024 |url=https://rmi.org/resources/vpp-policy-principles/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024vpp, author = {{RMI}}, title = {{VPP Policy Principles}}, institution = {RMI}, year = {2024}, month = feb, url = {https://rmi.org/resources/vpp-policy-principles/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }