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DOE OSTI · 3014856

Virtual Power Plants: Pilots, Challenges, and Innovations Shaping Future Development

Ding, Fei [National Laboratory of the Rockies, Golden, CO (United States)]·Utkarsh, Kumar [National Laboratory of the Rockies, Golden, CO (United States)]·Dugan, Jesse [National Laboratory of the Rockies, Golden, CO (United States)]·Speetles, Brittany [National Laboratory of the Rockies, Golden, CO (United States)]·Choi, Seong [National Laboratory of the Rockies, Golden, CO (United States)]·Kroposki, Ben [National Laboratory of the Rockies, Golden, CO (United States)]
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Abstract

Virtual Power Plants (VPPs) aggregate distributed energy resources (DERs) to provide grid services traditionally delivered by centralized power plants. This article reviews the current state of VPP deployment, highlighting business models, compensation mechanisms, and global pilot projects. While VPPs offer benefits such as grid flexibility, resilience, and cost savings, challenges remain in communication infrastructure, regulatory frameworks, market access, and customer engagement. To address these, we propose a scalable, privacy-preserving hierarchical VPP architecture that coordinates with distribution utilities and preserves customer data. We also present the Integrated T&D Control Room of the Future as a key test bed for validating and accelerating VPP adoption. These innovations can help transition VPPs from pilot programs to integral components of a modern, reliable power grid.

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24 POWER TRANSMISSION AND DISTRIBUTION29 ENERGY PLANNING, POLICY, AND ECONOMY32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATIONbusinesscomputer securitycostsdistributed power generationelectricity supply industryinteroperabilitylife estimationpower gridsreliabilityresilienceresource managementvirtual power plants

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Ding, Fei [National Laboratory of the Rockies, Golden, CO (United States)], Utkarsh, Kumar [National Laboratory of the Rockies, Golden, CO (United States)], Dugan, Jesse [National Laboratory of the Rockies, Golden, CO (United States)], Speetles, Brittany [National Laboratory of the Rockies, Golden, CO (United States)], Choi, Seong [National Laboratory of the Rockies, Golden, CO (United States)], Kroposki, Ben [National Laboratory of the Rockies, Golden, CO (United States)]. 2025-10-24. Virtual Power Plants: Pilots, Challenges, and Innovations Shaping Future Development. https://doi.org/10.1109/mpe.2025.3587184

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