A virtual power plant (VPP) is a collection of small-scale energy resources that, aggregated and coordinated with grid operations, can provide the same reliability and economic value to the grid as a traditional power plant, according to the nonprofit organization RMI.

And VPPs can help utility customers earn money. Large energy users can earn up to $100,000 a year through CPower Energy's program, said Mike Smith, CEO of CPower.

A recent report from RMI identified some of the gains VPPs have made recently. For example, 10 legislatures introduced VPP bills and four states passed VPP legislation in 2024. But more action is needed to meet the organization's goal of ensuring all US electricity consumers have access to VPP programs by 2035. Action is also needed to accelerate VPP adoption to meet booming energy demand.

Guests:

Gabriela Olmedo, head of policy and regulatory affairs at EnergyHub.

Mike Smith, CEO at CPower.

Background Reading:

RMI progress report, "From Awareness to Action."

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Learn more about Lisa's energy writing at CleanEnergyWriters.