Virtual power plants or VPPs are gaining momentum but remain a scarcity. Still, a utility in Ontario Canada has managed to develop one that encompasses 100,000 homes.
Could others duplicate the feat?
It’s possible that others could duplicate what Ontario’s Independent Electricity System Operator (IESO) in collaboration with EnergyHub was able to do, but it’s not straightforward.
The Save on Energy Peak Perks program which garnered so many participants benefited from some unique factors. First it was in Canada’s most populus province. That is something other populated areas can mimic. However, the program got a boost from being operated directly by Ontario’s IESO. This bypassed some of the bigger obstacles such as obtaining utility account numbers and meter data. The ISEO also offered free smart thermostat installations which expanded the available pool of homes that could participate.
If the U.S. could run a VPP directly through the Independent System Operators (ISOs) it would also likely increase its ability to attract participants. The problem is in the United States ISOs rarely interact directly with consumers.
Still, the U.S. has been able to develop comparable VPPs. The Cool Rewards program run by EnergyHub in Arizona has 78,000 participants. It can provide almost 110 megawatts of capacity, which is more power than the Ontario VPP.
The ConnectedSolutions program in New England has enjoyed similar success. They took a slightly different approach in combining both residential and commercial customers. That program has 34,000 customers and at the end of 2020 was providing 310 megawatts of capacity.
According to the most recent data from the Department of Energy, in the U.S. existing VPP programs account for 30 to 60 gigawatts of capacity. Expect the number of VVPs and participants to grow significantly, not only in the U.S. but throughout the world.
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