Virtual Power Plants Poised for Growth Thanks to Smart Technology
Analogous to what happens when server virtualization is used in a data center, virtual power plants use intelligent software to make more efficient use of resources. The key to the operation of a virtual power plant is to use information about resource utilization to dynamically balance loads in real-time. In particular, virtual power plants use intelligent software to link renewable energy generation systems, batteries for energy storage, smart meters, and in-home demand response systems. The true benefit of this approach is that virtual power plants can potentially delay the building of new power plants even as energy demands go up in the future.