virtual power plant

Syllable breakdown

Dictionary meaning

a cloud-based system that aggregates and centrally manages a distributed network of energy resources — including rooftop solar panels, home battery systems, electric vehicles, and controllable loads such as hot water heaters and air conditioners — to operate collectively as if they were a single large power plant, providing electricity generation, demand flexibility, and grid stability services; virtual power plants (VPPs) use digital communication, smart meters, and automated control systems to coordinate thousands or millions of individual devices in real time, allowing grid operators to call on this aggregated capacity when needed; VPPs enable households and businesses to participate in electricity markets, earn revenue from their assets, and contribute to grid stability, representing a fundamental shift from centralised to distributed energy systems