VIRTUAL POWER PLANT FLIPBOOK
Summary
The VPP Flipbook outlines how utilities can aggregate distributed energy resources (DERs)—such as batteries, electric vehicles, and smart thermostats—to provide grid services like capacity, energy, and resilience. It details a six-step development process and provides specific examples from utilities including PG&E, National Grid, and Green Mountain Power. The document emphasizes the importance of open-access structures, third-party partnerships, and the integration of VPPs into long-term resource planning to address load growth and decarbonization goals.
Key insights
- VPPs are grid-integrated aggregations of distributed energy resources (DERs) that can provide utility-scale services, including capacity, energy, ancillary services, and resilience, helping to alleviate stressed transmission and distribution systems and integrate more renewable energy.
- The US Department of Energy estimates that tripling VPP scale by 2030 could address 10%–20% of peak load and save approximately $10 billion annually in grid costs, with the potential to scale to 80–160 GW by 2030.
- Effective VPP program design requires an open-access structure to integrate multiple technologies and vendors, the use of long-term programs (5+ years) to improve cost-effectiveness, and the streamlining of customer enrollment to maximize participation.
- Utilities are encouraged to reimagine business practices by implementing cross-functional teams (spanning customer programs, operations, distribution, and planning) and automating administrative processes to enable scaling.
- Case studies demonstrate diverse VPP models: Arizona Public Service's Cool Rewards enrolled 83,000+ thermostats for 145 MW of capacity by 2023; Green Mountain Power's battery programs provide over 30 MW in capacity reductions; and California's ELRP and DSGS programs leveraged DERs for nine consecutive days in September 2022 to avoid rolling blackouts.
- EV-focused VPPs, such as those by DTE Energy and Duke Energy, utilize the Open Vehicle Integration Platform (OVGIP) to allow utilities to access multiple OEM brands through a single interface for managed charging and demand response.
- VPP implementation involves a six-step iterative process: defining objectives, baselining resources, initial draft design, stakeholder engagement, updated design/procurement/operation, and finally program assessment and expansion.
Cite the original document
- APA
- Brehm, K., & Tobin, M. (n.d.). VIRTUAL POWER PLANT FLIPBOOK. RMI. https://rmi.org/wp-content/uploads/dlm_uploads/2024/07/VP3_flipbook_v1_3.pdf
- Chicago
- Brehm, Kevin, and Mary Tobin. VIRTUAL POWER PLANT FLIPBOOK. RMI, n.d. https://rmi.org/wp-content/uploads/dlm_uploads/2024/07/VP3_flipbook_v1_3.pdf.
- Wikipedia
- {{cite report |last1=Brehm |first1=Kevin |last2=Tobin |first2=Mary |title=VIRTUAL POWER PLANT FLIPBOOK |publisher=RMI |url=https://rmi.org/wp-content/uploads/dlm_uploads/2024/07/VP3_flipbook_v1_3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{brehmndvirtual, author = {Brehm, Kevin and Tobin, Mary}, title = {{VIRTUAL POWER PLANT FLIPBOOK}}, institution = {RMI}, url = {https://rmi.org/wp-content/uploads/dlm_uploads/2024/07/VP3_flipbook_v1_3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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