Virtual Power Plants, Real Benefits

Virtual power plants (VPPs) aggregate distributed energy resources like batteries and electric vehicles to provide grid benefits. In the United States, VPPs could reduce peak demand by 60 GW by 2030 and 200 GW by 2050, while potentially reducing annual power sector expenditures by $17 billion by 2030. They support decarbonization by reducing reliance on polluting peaker plants and enable economy-wide electrification by providing revenue streams and avoiding grid bottlenecks.

• Virtual power plants (VPPs) can significantly reduce peak demand in the United States, with potential reductions of 60 gigawatts (GW) by 2030 and exceeding 200 GW by 2050.
• VPPs offer economic benefits by improving electricity affordability and could lower annual power sector spending by $17 billion by 2030.
• VPPs contribute to decarbonization and health equity by reducing the use of natural gas-fired "peaker" plants, which often negatively impact low-income communities and people of color.
• To scale the VPP market to hundreds of gigawatts over the next ten years, three priorities are required: researching and communicating benefits, developing industry standards and roadmaps, and shaping policy.

APA

RMI (2023). Virtual Power Plants, Real Benefits. https://rmi.org/resources/virtual-power-plants-real-benefits/

Chicago

RMI. Virtual Power Plants, Real Benefits. 2023. https://rmi.org/resources/virtual-power-plants-real-benefits/.

Wikipedia

{{cite report |author=RMI |title=Virtual Power Plants, Real Benefits |date=10 January 2023 |url=https://rmi.org/resources/virtual-power-plants-real-benefits/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023virtual, author = {{RMI}}, title = {{Virtual Power Plants, Real Benefits}}, institution = {RMI}, year = {2023}, month = jan, url = {https://rmi.org/resources/virtual-power-plants-real-benefits/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }