Virtual power plant is a power plant based on software instead of physical factory. VPP connects many DERs to form an energy network. Meanwhile, it allows bi-directional power flow between utility, commercial as well as residential end users.
Not only helping end users make profit by feeding their renewable energy into the network, VPP also serves several significant functions for the grid.
For instance, the central control system of the VPP monitors, coordinates and controls all the DERs within its scope to respond to imbalances created by renewable energy and other intermittent resources.
Specifically, it can fleetly increase or decrease the power output in real time to maintain the grid stability. Meanwhile, load shifting and peak shaving can also be achieved.