What are VPPs?

A cleaner, smarter approach to grid resilience

Virtual power plants (VPPs) are networks of hundreds, thousands, or even millions of distributed energy resources (DERs) aggregated together to operate like traditional power plants, delivering energy and capacity to the grid.

Orchestrating distributed technologies

VPPs intelligently coordinate across a wide range of grid-interactive devices installed in homes and businesses, including battery storage, electric vehicles, building management systems, smart thermostats, heat pumps, and other types of DERs.

Delivering flexible grid support

By reducing or shifting energy usage, or discharging back to the grid, DERs can help balance supply and demand in real time. Deployed together as VPPs, they help ensure grid stability and improve energy security.

Unlocking value through grid services

Through demand response and other grid services programs, VPPs can earn revenue from utilities and wholesale electricity markets for their contributions to the grid.

“Deploying 80-160 GW of VPPs in the U.S. by 2030 would serve 10-20% of peak load, supporting rapid load growth while reducing overall grid costs.”

From the DOE’s Pathways to Commercial Liftoff: Virtual Power Plants

The Case for VPPs

Reliable. Affordable. Sustainable.

VPPs offer a powerful, scalable way to address key grid challenges while creating tangible benefits for businesses, households, and communities.

Technology Companies

Unlock new revenue from existing assets

Device Owners

Earn incentives and reduce energy bills

DER owners can often receive financial incentives for participating in VPP programs, along with potential savings from shifting usage away from high-cost times, depending on geography.

Communities

Keep the lights on during energy emergencies

VPPs bolster grid reliability and energy security, lowering the risk of blackouts by responding quickly to reduce strain on the grid in targeted areas during periods of high energy demand.

Grid Operators

Flexible capacity, without the capital investment

VPPs offer a faster, more cost-effective solution to building new traditional power plants. According to McKinsey, global demand for data center capacity could more than triple by 2030. By tapping into existing distributed resources, they help the grid meet growing demand from data centers as well as electrification while reducing overall system costs.

Sustainability

The cleanest energy is the kind you don’t use

By reducing load during peak demand, VPPs displace the need for fossil-fueled peaker plants to balance the grid, lowering emissions and improving the carbon intensity of the grid.

“By 2050, VPPs could avoid 44-59 million metric tons of CO₂ per year.”

From RMI's Clean Energy 101: Virtual Power Plants

Leap's VPPs

How it works

Leap pays technology providers to reduce or shift energy usage across their participating customers. Partners receive dispatches from Leap and use their controls software to change device behavior.

Partner

1. Virtually aggregate DERs from across our partner network
2. Sell energy and capacity into relevant energy markets
3. Signal partners to dispatch customers during grid events
4. Share revenue generated from market participation with our partners

The Grid, Reimagined

VPPs are essential to the future of energy

Together, we’re building a more flexible, resilient, and sustainable electric grid, powered by distributed technologies.

Virtual Power Plants are Energy Affordability Infrastructure from Leap on Vimeo

FAQ: Virtual power plants

Virtual power plants are reshaping how the grid manages energy. Here are the questions we hear most often from people looking to better understand how they work and why they matter.