Experts Highlight Affordability, Reliability Benefits of Virtual Power Plants

Virtual power plants are increasingly seen as tools for affordability, reliability and resilience, according to experts speaking during a webinar organized by the Regulatory Assistance Project.

Kevin Brehm, who manages RMI's carbon-free electricity practice, said utilities increasingly view VPPs as affordability levers that can reduce wholesale demand during high-price periods and defer distribution system investments. Bronte Payne, senior manager for policy at Sunrun, said scaling VPP participation requires robust compensation, "revenue-grade metering" and customer protections like penalty-free opt-out.

Brehm said VPPs built around residential batteries and managed EV charging are growing faster than thermostat-based programs, and pointed to Consolidated Edison Co. of New York's demand-response VPP and Puerto Rico utility Luma Energy's Customer Battery Energy Sharing program as examples of reliability and resilience benefits, respectively. He also cited a GM-commissioned analysis finding that vehic