What is Virtual Power Plant?

A virtual power plant is an association of decentralized units in the power grid, which are coordinated via a common control system. The units can be electricity producers such as biogas, wind power, photovoltaic CHP or hydroelectric power plants, electricity consumers, electricity storage and Power-to-X plants (power-to-gas, power-to-heat). The purpose of the Virtual Power Plant is the co-marketing of power and flexibility from the horde of aggregated plants. Any decentralized producer, energy-storing or consuming actor in the electricity market can become part of a virtual power plant.

Virtual Power Plants are a new approach for decentralized unit of power. 

The horde of individual power units is managed by a central control system, which not only coordinates the individual systems in the virtual power plant by means of a special algorithm, but also, reacts to network conditions and control reserve call commands by transmission system operators, like a single large-scale power station,. In connection with the electricity trade, the Virtual Power Station is also able to react quickly and efficiently to price signals from the electricity markets and to adapt its operation style accordingly.