Unlocking the 21st Century’s Greatest Untapped Energy Resource

VP3 is catalyzing industry to scale the market for virtual power plants (VPPs).

What Are Virtual Power Plants (VPPs)?

Distributed energy resources (DERs) such as electric vehicles, smart thermostats, solar photovoltaic panels, heat pumps, and battery energy storage systems are seeing record-setting levels of investment and adoption. And their fast-growing strength in numbers can do even more if they work together. VPPs are a ‘missing link’ that unlocks the full potential of DERs.

How Do VPPs Work?

A VPP is a grid-integrated aggregation of many individual DERs. The many DERs of any given VPP act as a coordinated unit as if they were a single, larger power plant. VPPs bring together the devices in people’s homes and businesses to provide valuable services to the electricity grid, and in turn compensate consumers for those services provided.

For example, a distributed ‘fleet’ of thermostats, batteries, and EVs might all work together to shift their demand to reduce peak grid load during a summer heat wave.

What Value Do They Deliver?

VPPs make the grid more reliable and resilient to extreme weather, lower energy costs, enable economy-wide electrification, and help integrate more clean energy that reduces air pollution and its negative health impacts. The time is now to scale the market for virtual power plants.


Members are listed alphabetically. Initial funding of the VP3 effort was made possible by General Motors and Google Nest

Seizing the Opportunity

The technologies needed to operate VPPs—both hardware and software—already exist. The challenges to tapping VPPs’ true potential are primarily policy, regulatory, and market-based.

That’s why the Virtual Power Plant Partnership (VP3) was born. We are exclusively dedicated to understanding the opportunities—and challenges—of the VPP market, including the roles that DERs and demand flexibility can play in decarbonizing and stabilizing the grid.

About the Virtual Power Plant Partnership (VP3)

VP3 is a coalition of nonprofit and industry voices changing the necessary policies, regulations, and market rules to unlock and scale VPPs. Our members span the automotive, building, energy service, software, and other sectors.

A robust VPP market expands the possibilities for all DERs—empowering households, businesses, and communities to help ensure affordable energy, clean air, and a reliable electricity grid.

Learn More About VP3


Are you interested in helping us ‘flip the switch’ on VPPs? If you’re a solution provider— including hardware and software technology vendors—we’re ready to talk.

Get In Touch

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