virtual power plants

also referred to as: virtual power plant · vpp · vpps

19 statements across 10 episodes · 12 bullish · 3 bearish · 9 people on the record · first statement Jul 12, 2022 by Paul Lau · across every show →

Everything said about virtual power plants, oldest first

Jul 12, 2022 positive
Disclosure
Lau: SMUD offers $500–$2,500 incentives for virtual power plant battery enrollment
“Convince them to put batteries in and have them sign up for programs like Smite is doing right now, what we call the virtual power plant, that you offer them incentives to sign up if they have a batteries from, you know, some simply just say, hey, I am going t…”
Paul Lau Jul 12, 2022 ▶ 16:29 The people-centric transition to zero emissions [Partner content]
Feb 8, 2023 positive
Assertion Supported
Spector: 88% of Sonnen's US batteries participate in virtual power plants
“Yeah, so Sonnen it was actually 88% of the batteries they've installed in the U.S. Are part of some sort of virtual power plant or grid, grid interactive program, which is just a wild statistic compared to the norm for the market where, you know, most people a…”
Julian Spector Feb 8, 2023 ▶ 19:07 A new catalyst for the smart home: electrify everything
Mar 8, 2023 negative
Opinion
Shah: US transformer backlog stems from avoiding VPPs, not actual shortages
“This is why we have a three-year backlog on distribution transformers. It's not because we have a shortage of distribution transformers in this country. It's because everybody wants to fix the problem using 19 eighties approaches instead of virtual power plant…”
Jigar Shah Mar 8, 2023 ▶ 40:35 Are oil & gas majors abandoning clean energy?
May 1, 2023 bullish
Assertion Supported
Shah: US adds 2 GW monthly in app-controllable distributed energy assets
“Today we're adding, and we're adding two gigawatts a month to our homes and businesses of things that you can control with an app on your phone, right?”
Jigar Shah May 1, 2023 ▶ 47:33 America’s green industrial strategy 2.0
Sep 21, 2023 positive
Assertion Supported
DOE report shows tripling VPPs redirects peaker plant spending
“I mean, it outlined kind of how tripling the current rate of VPPs could, and I quote, support rapid electrification while redirecting grid spending from peaker plants to participants and reducing overall grid costs.”
Lisa Martine Jenkins Sep 21, 2023 ▶ 19:55 New frontiers of clean energy emerge
Nov 16, 2023 bullish
Prediction Not checkable as stated
Bombay: VPPs will resolve localized grid bottlenecks within 5 to 10 years
“I think VPPs have quite a unique role to play in helping alleviating those very localized pain points. And we're not even there right now. We're just talking system wide capacity is pretty much like the limit as to how much VPPs have been able to contribute in…”
Jay Bombay Nov 16, 2023 ▶ 54:44 AI in the real world: Solar forecasting, EVs, and virtual power plants
Jan 9, 2024 bearish
Opinion
Davis: US solar-plus-storage attachment rates remain too low to transform VPPs
“But in my opinion, solar plus storage attachment rates in the U.S. Are, like, not high enough yet for batteries to really, like, be a potential game changer in VPPs.”
Michelle Davis Jan 9, 2024 ▶ 23:52 The terawatt era of PV: ‘Solar will be the gas of today’
Feb 15, 2024 neutral
Assertion Supported
Downing: US currently has 30 to 60 GW in VPP capacity
“Well, depending on how you define it we have about 30 to 60 gigawatts of capacity in VPPs today.”
Jen Downing Feb 15, 2024 ▶ 14:00 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 bullish
Insight
Downing: VPPs are hard physical assets aggregated via software, not abstractions
“People misunderstand the word virtual to mean, you know, not real. When these are hard assets on the grid, it's not phone calls anymore. It's software integrations, and it's large aggregations of small resources that really add up to something very valuable.”
Jen Downing Feb 15, 2024 ▶ 4:30 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 positive
Assertion Supported
Downing: Most VPP spending goes directly to participant incentives
“But what's even more striking is that the money that is spent on virtual power plants, the majority of those costs are actually participant incentives.”
Jen Downing Feb 15, 2024 ▶ 9:16 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 neutral
Insight
Downing: Wholesale prices for VPPs do not capture distribution value
“I think when you have virtual power plants bidding into wholesale markets and earning a price that represents the value to the bulk power system, It's an incomplete price, because it's not taking a, it's not taking account of the value to the distribution grid…”
Jen Downing Feb 15, 2024 ▶ 23:48 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 negative
Insight
Downing: Utility CapEx return models heavily disincentivize low-cost VPP adoption
“The utility business model of compensating CapEx spending with maybe a seven to nine percent margin and passing through OPEX at cost to the consumer does not give utilities the right incentives to choose low-cost options such as VPPs”
Jen Downing Feb 15, 2024 ▶ 30:32 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 neutral
Disclosure
Downing: DOE accepted 'VPP' because it couldn't erase market terminology
“We may have influence at the Department of Energy, but we didn't think we had so much influence we could erase the term VPP from the market.”
Jen Downing Feb 15, 2024 ▶ 1:47 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 bullish
Prediction Not checkable as stated
Downing: Tripling US VPP capacity by 2030 would save $10 billion annually
“But if we can triple the capacity of VPPs between now and 2030, we could serve 10 to 20% of peak load nationally through virtual power plants. And if we did that, because they are a lower cost solution, we'd be saving about ten billion dollars per year.”
Jen Downing Feb 15, 2024 ▶ 15:40 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 bullish
Assertion Supported
Downing: VPP peaking capacity can be 60% cheaper than gas peakers
“For a utility, procuring peaking capacity from a VPP can be 60% cheaper than procuring it from a natural gas peaker plant.”
Jen Downing Feb 15, 2024 ▶ 9:06 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 positive
Opinion
Lacey: Tripling VPP capacity is necessary for an affordable zero-carbon grid
“If we want any chance of building a grid powered by a hundred percent zero carbon resources and do it affordably and reliably, we need to triple capacity of VPPs.”
Stephen Lacey Feb 15, 2024 ▶ 4:10 Virtual power plants: the ‘sandwich’ for the grid
Feb 15, 2024 bullish
Prediction Not checkable as stated
Downing: Utilities will increasingly procure virtual power plants directly
“And so I think what you'll end up seeing is utilities recognizing the value that they can get out of these VPPs and procuring VPPs directly.”
Jen Downing Feb 15, 2024 ▶ 25:08 Virtual power plants: the ‘sandwich’ for the grid
Jul 16, 2024 positive
Insight
Shah: Virtual power plants must be opt-out and fully automated to scale
“One, Everything needs to be opt out. This notion that we need to spend 700 dollars to, like, talk to people and beg them to opt into something is looney tunes. Like, when you hook up something, it's automatically opted into a VPP, and then we should give you a…”
Jigar Shah Jul 16, 2024 ▶ 48:38 Our final episode: The top stories of 2024 so far
Sep 4, 2024
Insight
Farooqi: Voluntary grid alerts lose impact without tangible financial incentives
“See, the problem with alerts is they only work a few times. Then it's like the, you know, the kid who cried wolf doesn't have an impact. You have to make it tangible by giving them a monetary payment or charging a higher price.”
Ahmad Farooqi Sep 4, 2024 ▶ 36:13 Frontier Forum: How rates will make or break the energy transition
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