A virtual power plant (VPP) is a network of decentralized, distributed energy sources such as solar, wind, and biogas plants, energy storage systems, and flexible electricity consumers, all coordinated and controlled by a central management hub. The goal is to aggregate the generation capacities of these diverse units and operate them as if they were a single power plant. By balancing the fluctuating supply of renewable energies and enhancing grid stability, virtual power plants contribute to a more efficient and stable energy supply within the smart grid.
Moreover, virtual power plants promote the decentralization of energy generation, increasing the resilience of the power grid and reducing reliance on large central power plants. Through demand side management, market participants can optimally utilize this flexibility to reduce their energy consumption during peak demand periods or increase it during energy surpluses. An additional key function of virtual power plants is enabling producers to market the self-generated power of connected assets.
Cloud platforms for digital optimization of building operations can play a central role in this context. By capturing, analyzing, and processing real-time data, these platforms can precisely track how much energy a building generates, stores, and consumes. For example, the platform can determine when a building produces excess solar energy and decide whether to store it locally or feed it into the grid.
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