Virtual Power Plant (VPP)

A Virtual Power Plant (VPP) is a digitally connected network of decentralized energy assets — such as PV systems, battery storage systems, heat pumps, or charging infrastructure. These assets are centrally coordinated and operated together like a large power plant — flexible, market-ready, and supportive of grid stability.

How it works

Via a digital platform, numerous small energy assets are aggregated and intelligently coordinated. A central control system (usually operated by an aggregator) can feed electricity into the grid, shift loads, or provide balancing services — depending on grid requirements, electricity prices, or system availability.

Battery storage systems are particularly suitable because they can react very quickly and can be deployed in multiple applications. BESS systems operated by BEO can therefore contribute to grid stability while unlocking additional revenue streams through flexibility markets.

Typical applications

• Aggregation of multiple BESS and PV sites into one virtual power plant
• Participation in balancing services markets through bundled storage capacity
• Direct participation in electricity trading markets using combined flexibility
• Control of charging loads and heating applications to stabilize the grid
• Cross-sector applications in energy districts or industrial networks

Key figures

• Aggregated capacity (MW): total power that can be injected or shifted
• Number of connected assets
• Response time: sub-second response for primary control reserve (FCR)
• Market revenues (€): generated through electricity trading, flexibility markets, and grid services
• Level of digitalization: interfaces to EMS, smart meters, grid operators, and electricity exchanges

Summary

A Virtual Power Plant connects distributed energy assets into a controllable and economically valuable system. Companies can integrate their energy infrastructure into electricity markets and grid services, generate additional revenue streams, and monetize flexibility.