article · Energy Sustainability and Society
Virtual power plants aggregate distributed energy resources, such as solar panels, wind turbines, battery storage systems, and demand response units, into coordinated networks. They have evolved to support grid stability, demand-side management, and the integration of renewable energy sources into modern power systems. A review of existing literature demonstrates that virtual power plant adoption is expanding across global markets. However, widespread implementation relies heavily on supportive regulatory frameworks and economic incentives. Realising the full potential of these systems requires addressing existing technological, operational, and market hurdles. Broad collaboration among diverse industry stakeholders is necessary to overcome these barriers, ensuring that aggregated energy assets can effectively modernise power infrastructure and enhance overall environmental sustainability.
As electricity grids incorporate more intermittent renewable energy, virtual power plants provide a mechanism to coordinate small, decentralised energy generators and storage devices. Understanding the policy, operational, and technological requirements for these systems helps modernise energy infrastructure, balance demand, and maintain overall grid stability.
The work reviews virtual power plants as tools for grid operators, utilities, and energy asset managers to integrate distributed renewables and storage into electricity markets. Because this is a broad literature review rather than a product trial, it highlights market trends and operational requirements rather than testing a specific commercial tool, indicating that practical implementation depends on market-specific regulatory frameworks and collaborative stakeholder initiatives.
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Abstract Background Virtual power plants (VPPs) represent a pivotal evolution in power system management, offering dynamic solutions to the challenges of renewable energy integration, grid stability, and demand-side management. Originally conceived as a concept to aggregate small-scale distributed energy resources, VPPs have evolved into sophisticated enablers of diverse energy assets, including solar panels, wind turbines, battery storage systems, and demand response units. This review article explores the evolution of VPPs and their pivotal roles as major stakeholders within contemporary power systems. The review opens with a definition of VPPs that clarifies both their fundamental traits and technological foundations. A historical examination of their development highlights major turning points and milestones that illustrate their transforming journey. Main text The methodology used for this article entailed a thorough examination to identify relevant studies, articles, and scholarly works related to virtual power plants. Academic databases were used to gather relevant literature. The literature was organized into categories helping to structure and present information in a logical flow based on the outline created for the review article . The discussions in the article show that the various functions that VPPs perform in power systems are of major interest. VPPs promote the seamless integration of renewable energy sources and provide optimum grid management by aggregating distributed energy resources, which improves sustainability. One of the important components of this evaluation involves taking market and policy considerations. Examining worldwide market patterns and forecasts reveals that VPP usage is rising, and that regulatory frameworks and incentives have a bigger impact on how well they integrate. Conclusion Overcoming obstacles is a necessary step towards realizing full VPP potential. For VPPs to be widely adopted, it is still essential to address technological and operational challenges as they arise. Diverse stakeholders must work together to overcome market obstacles and promote the expansion of the VPP market. This analysis highlights the potential for VPPs to propel the evolution of contemporary power systems toward a more sustainable and effective future by highlighting areas for future research and development.
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DOI: 10.1186/s13705-024-00483-y
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