On the evening of September 9, 2026, with rising temperatures and high electricity demand in California, over 140,000 home batteries simultaneously began discharging energy. During a three-hour period, these batteries injected more than 580 megawatts of electricity into the California grid, equivalent to the output of a large traditional power plant.
Definition of a Virtual Power Plant
A Virtual Power Plant (VPP) is a network of small, distributed energy resources, such as home batteries, smart thermostats, electric vehicle chargers, and solar panels, coordinated by software to operate as a single power plant. When the grid needs assistance, a VPP can inject stored electricity into the grid or reduce demand from it.
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Operation of Virtual Power Plants
Each virtual power plant consists of three main layers: devices, aggregator, and grid operator. Devices include batteries, thermostats, and other equipment typically owned by homeowners and businesses. The aggregator is a company that has software to connect to these devices, forecast the available capacity, and offer it to the market. The grid operator or utility company is the buyer that requests assistance from the VPP when there is a need for additional supply.
In a typical event, a utility company expects demand to peak at 6 PM. At this time, the aggregator prepares by pre-cooling homes and ensuring batteries are fully charged. As the event begins, the batteries discharge their energy while other devices reduce their activity.
Components of a Virtual Power Plant
Almost anything that consumes, stores, or generates electricity and can be controlled remotely can be part of a VPP. These resources include home batteries, smart thermostats, electric water heaters, electric vehicle chargers, and solar panels. Virtual power plants are divided into two categories: those that primarily reduce demand and those that add supply.
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