What Are VPPs and How Do They Work in ERCOT?
How Do VPPs Work? Learn how Texas homeowners with solar and EVs can band together to form VPPs and sell their excess electricity to help power the Texas grid.. VPPs are becoming a bigger part of the Texas power market. Short for “virtual power plants,” VPPs group many small power resources into one larger system. These can include rooftop solar, home batteries, and electric vehicles. Some light companies now use VPP programs to help manage demand during peak hours. Instead of building a new power plant, a VPP links many small devices through software. This aggregated power system can cut demand or send stored power back to the grid when ERCOT needs support. In simple terms, it turns many small home systems into a shared grid resource. How VPPs Work In ERCOT A virtual power plant does not make power on its own. Instead, it coordinates power from many homes and businesses. For example, a home with solar and a battery may allow a VPP operator to use its stored power du...