Auden Schendler’s home is an unlikely beacon of innovation and resilience in the Colorado mountains.

A Personal Solution with a Broader Impact

Despite frequent power outages caused by mudslides, fires, and ice storms, Schendler’s home remains unaffected. His secret lies in what he calls the “Dr. Seuss machine” in his garage, which he believes safeguards his home and benefits his community. Schendler’s house, a seemingly ordinary 1960 ranch-style home in Basalt, Colorado, boasts a combination of solar panels, an electric vehicle (EV) charger, and three large batteries installed through a local utility program.

These installations allow his home to function like a modern green building. “My house is how we grapple with the climate problem,” Schendler explains. The batteries were installed under a program by Holy Cross Energy, which allows the utility to access and use the stored energy, compensating Schendler each time.

Virtual Power Plants: A Growing Trend

Virtual Power Plants (VPPs) are becoming a cornerstone in the transition to renewable energy. By leveraging smart appliances and battery technology, VPPs help reduce energy consumption during peak times and feed excess power back into the grid. This system enhances grid resilience and accelerates the shift to clean energy while offering consumers financial incentives. In the United States, VPPs currently have a capacity of 30 to 60 gigawatts. The Department of Energy predicts this capacity could triple by the end of the decade, a crucial step toward achieving the country’s goal of 100% clean energy by 2035. Holy Cross Energy aims to reach this milestone by 2030, with VPPs playing a central role.

Increased Demand and Federal Support

The surge in interest in VPPs is driven by rising electricity demand, the push for electrification, and substantial federal funding for climate and energy projects. Lauren Shwisberg from the energy think tank RMI notes, “We’ve seen a lot of action in the last year. VPPs have already played a significant role in supporting grid reliability, such as avoiding major blackouts in California.” The U.S. government is now encouraging utilities, grid operators, and investors to consider VPPs more seriously. Jennifer Downing from the Energy Department’s Loan Programs Office emphasizes the urgency: “We’re at a moment where we need VPPs more than ever.”

Community and Technological Integration

Local authorities can facilitate the growth of VPPs through supportive policies and building codes. For instance, Sacramento’s community-owned utility has a VPP pilot program aimed at stabilizing renewable energy generation. Customers receive up to $2,500 for enrolling a residential battery, along with additional payments for grid support.

VPPs also assist in meeting new climate-related commitments. New York City’s law requiring large buildings to track and limit their carbon footprint is one example. Jeff Hendler, CEO of Logical Buildings, explains how their digital platform helps residents and managers optimize energy use and reduce costs by coordinating smart appliances and battery storage.

Future Potential and Community Benefits

VPPs offer a promising solution to reduce reliance on gas-fired “peaker” plants that operate during peak energy demand. In Westchester County, New York, Sustainable Westchester is working to expand the use of VPPs. By engaging 350,000 households with small backup systems, they aim to eliminate the need for these peaker plants.

VPPs represent a transformative approach to energy management, offering resilience against climate impacts, supporting the clean energy transition, and providing financial benefits to consumers. Schendler’s home in Basalt is a microcosm of a broader movement towards sustainable and resilient energy solutions.