A Virtual Power Plant (VPP) is a network of connected solar batteries that communicate with each other to turn into a pop-up powerplant. By drawing a limited amount of energy from each battery, the VPP creates a large pool of energy that can be shared.
It’s a community-based solution designed to reduce pressure on the grid, minimise disruptions to supply and enable more renewable energy to power Australian homes.
Traditionally, energy is pulled from one centralised place – like a wind farm or a coal-fired power station to keep power running at home.
The VPP is unique because it draws power from many different sources, such as solar batteries in households and small businesses.
When rooftop solar panels soak up the daytime sun, batteries can store that energy. Then when the sun goes down, that stored energy can power households. So when there’s a high demand on the grid, instead of pulling from a generation site, cloud-based software means the community can pull supply from these individual connected batteries.
In 2016, AGL launched a VPP in Adelaide, South Australia, in partnership with the Australian Renewable Energy Agency (ARENA). When it was launched it was the largest retailer-led residential VPP in the world: with 1000 solar batteries, all talking to each other through a cloud-based platform.
South Australian VPP members like Geoff were excited to be part of this community-based power revolution. Today, AGL now offers VPP in other states including New South Wales, Victoria and Queensland. By joining and sharing their power, customers can unlock bill credits while playing their part in a cleaner energy future.
AGL can help you install a solar system and battery so you can join the VPP’s growing network.
