Reimagining the Electricity Sector in Island Nations with Virtual Power Plants

The document argues that virtual power plants (VPPs), which aggregate decentralized energy resources (DERs) like rooftop solar and battery storage, can reduce the Caribbean's dependence on expensive imported fossil fuels and improve grid stability against climate-driven threats like hurricanes. Using the US Virgin Islands as a case study, the report evaluates the scalability of VPPs to provide energy, capacity, and ancillary services, offering recommendations for policymakers and utilities to transition toward cleaner, more resilient energy systems.

• Virtual power plants (VPPs) address the vulnerabilities of island nations—such as dependence on expensive, polluting imported fossil fuels and aging grid infrastructure—by aggregating decentralized and distributed energy resources (DERs) to operate as a unified system.
• VPPs can improve energy resilience, lower system costs, and increase grid flexibility by aggregating resources such as rooftop solar panels, battery energy storage systems, electric vehicle chargers, and smart thermostats.
• A case study of the US Virgin Islands (USVI) demonstrates that VPPs can stabilize the grid, improve disaster preparedness, and enhance overall system affordability.

APA

RMI (2025). Reimagining the Electricity Sector in Island Nations with Virtual Power Plants. https://rmi.org/resources/reimagining-the-electricity-sector-in-island-nations-with-virtual-power-plants/

Chicago

RMI. Reimagining the Electricity Sector in Island Nations with Virtual Power Plants. 2025. https://rmi.org/resources/reimagining-the-electricity-sector-in-island-nations-with-virtual-power-plants/.

Wikipedia

{{cite report |author=RMI |title=Reimagining the Electricity Sector in Island Nations with Virtual Power Plants |date=2 April 2025 |url=https://rmi.org/resources/reimagining-the-electricity-sector-in-island-nations-with-virtual-power-plants/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025reimagining, author = {{RMI}}, title = {{Reimagining the Electricity Sector in Island Nations with Virtual Power Plants}}, institution = {RMI}, year = {2025}, month = apr, url = {https://rmi.org/resources/reimagining-the-electricity-sector-in-island-nations-with-virtual-power-plants/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }