Virtual power plants (VPPs) are aggregations of distributed energy resources such as smart thermostats, batteries, and electric vehicles (EVs) that can be orchestrated to deliver a wide array of benefits to the energy system. For instance, in times of peak demand, customers enrolled in VPP programs can discharge electricity from a plugged in EV to support their grid and get compensated for the service.

The Virtual Power Plant Partnership (VP3) brings together a coalition of industry stakeholders to scale the benefits of VPPs across the United States. The technologies and systems that create VPPs already exist. VP3 works to scale their deployment by developing research and resources to share with key stakeholders, such as state houses and regulators across the United States, that showcase the variety and size of the benefits VPPs can offer. VP3 members convene to collaborate and share what is working and what challenges can be resolved together, all while supporting excellence in the market.

The benefits of VPPs have gone from speculative to demonstrated, and state legislatures and regulators are taking action to bring them to their constituents. Last year, 10 state legislatures introduced VPP bills, regulators in 4 states and the District of Columbia advanced VPP policies, and utilities in 34 states and Puerto Rico initiated or expanded VPP programs.

Beyond policy and utility action, the VPP industry, led by VP3 members, made notable partnerships, announcements, and shifts that are transforming the industry, launching VPP programs and spearheading other initiatives that are propelling the industry forward.

In this report, you’ll learn about:

• The VPP progress made in 2024
• VP3’s actions in 2024
• What 2025 has in store for VP3

If you would like to learn more about becoming a VP3 member, please reach out to Neevetha Nadarajah at Neevetha.Nadarajah@rmi.org.