up:: [[Energy Systems MOC]] tags:: #on/energy_management #note/develop # Virtual Power Plants > A **virtual power plant** (**VPP**) is a [cloud-based](https://en.wikipedia.org/wiki/Cloud_computing) distributed power plant that aggregates the capacities of heterogeneous [distributed energy resources](https://en.wikipedia.org/wiki/Distributed_energy_resources "Distributed energy resources") (DER) for the purposes of enhancing power generation, trading or selling power on the electricity market, and demand side options for load reduction. DER assets in a VPP can include photovoltaic solar, energy storage, electric vehicle chargers, and demand-responsive devices (such as water heaters, thermostats, and appliances) with examples of virtual power plants existing in the United States, Europe, and Australia. --- ## Objective of a Virtual Power Plant (VPP) A VPP should be able to monitor, forecast, optimize, and trade the power of its managed assets. This way, a VPP is an integral part of a responsive, smart grid in that: * VPPs help rebalance power in real-time by ramping up and down controlled units. * VPPs create the preconditions for renewable energy options into the grid and energy markets. * VPPs can enable smaller generators and loads to offer balancing services in aggregate, whereas they wouldn't meet the minimum reliability and bid size individually. By a combination of the above points, ultimately, a VPP can offer the same generation performance to be a **drop-in replacement for fossil-fuel power plants**. As well as a power sink to handle excessive intermittent generation to balance the grid. **VPPs are the sponge of the modern, responsive grid ecosystem**. ### Objectives of a VPP Operator todo: logical containments [California ISO (CAISO) · Energy Knowledge Base](https://energyknowledgebase.com/topics/california-iso-caiso.asp) [Non-Profit Utilities Could Cure What Ails California Electricity | Economics Outside the Cube](https://mcubedecon.com/2019/11/19/non-profit-utilities-could-cure-what-ails-california-electricity/) [SCE Territory Map | Leadership | Who We Are | About Us | Home - SCE](https://www.sce.com/about-us/who-we-are/leadership/our-service-territory) Sources * [Virtual power plant - Wikipedia](https://en.wikipedia.org/wiki/Virtual_power_plant) * [VPP explained: What is a Virtual Power Plant?](https://www.next-kraftwerke.com/vpp/virtual-power-plant)