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Virtual Power Plants – The Newest Way to Save Energy and Money
June 24, 2024
You may know about power plants, but have you heard of virtual power plants? Often referred to as VPPs, they use Wi-Fi, Bluetooth, or cellular services to control smart devices like smart thermostats connected to HVAC systems, smart water heaters, photovoltaic solar panels, battery storage systems and EV charging stations. This network of smart devices or assets helps smooth electricity demand throughout the day and avoid electric grid emergency response and use of expensive power sources when electricity demand is high. The goal is to use solar energy, battery storage and hot water storage during peak electricity demand times and move EV charging station, water heater and HVAC system electricity usage to off-peak times or simply reduce electricity use by disabling assets throughout the day.
You may know about power plants, but have you heard of virtual power plants? Often referred to as VPPs, they use Wi-Fi, Bluetooth or cellular services to control smart devices like smart thermostats connected to HVAC systems, smart water heaters, photovoltaic solar panels, battery storage systems and EV charging stations. This network of smart devices or assets helps manage electricity demand throughout the day and avoid electric grid emergency response and use of expensive power sources when electricity demand is high.
Optimizing Energy Usage with VPPs
The goal is to use solar energy, battery storage and hot water storage during peak electricity demand times and move EV charging station, water heater and HVAC system electricity usage to off-peak times or simply reduce electricity use by disabling assets throughout the day.
VPPs build on the foundation of demand response. Originally used to control consumer energy usage, VPPs can now be used to supply surplus electricity back to the grid when needed. This new functionality is driving more states and utility companies to add VPPs to control their grids. We found an article so you can see how virtual power plants work.
Benefits of VPPs
The growing popularity of VPPs can be attributed to a number of benefits including:
Response to High Demand – They help the energy grid respond to high demand while reducing the system’s carbon footprint. Grid operators won’t have to resort to switching on previously dormant gas power plants during times of high demand.
Lower Costs – They provide cleaner, more affordable energy for consumers. VPPs prevent the grid from becoming overburdened and keep costs down at the same time. When needed, they supply electricity back to the grid. There is little to no compromise for consumers. Homeowners can still choose to override the changes during an event if they have a need for more hot water.
Consumer Participation – Consumers are encouraged to be more involved in the energy system. By choosing to participate in a VPP supported demand response program like OhmConnect, homeowners can play an active role in shaping how energy is consumed within their home.
How Rheem Supports Participation in VPPs
Rheem® is dedicated to helping you participate in smart connected initiatives. We’ve been partnering with TECH Clean California to support connecting heat pump water heaters and enrolling in demand response programs facilitated by VPPs.
Now, with the widest breadth of smart water heaters powered by EcoNet® technology, you can easily participate in demand response programs available in your service areas. If you’re a homeowner who has connected your smart water heater in the EcoNet app, you can take advantage of in-app enrollment in various programs, including through VPP aggregators. Connect, enroll and save to get the most out of your VPP experience.
Make Sure You Schedule Annual Maintenance
Annual professional maintenance is recommended for your water heater to maintain a comfortable home. Find a professional Rheem plumber or contractor near you:
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