Next-gen virtual power plants: Enel X on building a resilient Taiwanese grid
A Virtual Power Plant (VPP) isn't an actual physical power plant but rather an invisible command center emphasizing demand-side management. By employing highly digitized technologies and platforms, distributed energy resources (DERs)[1] —such as rooftop solar installations, wind turbines, battery storage systems, and soon-to-be widespread electric vehicles (EVs) and charging stations—are interconnected, enabling independent resources to be collectively managed and dispatched as if they were a conventional power plant.
"Everyone has heard of Virtual Power Plants but may not fully grasp their definition or the problems they truly solve," states Roger Chen, Head of Enel X Taiwan." A VPP aggregates dispersed energy resources via digital technologies, forming an intangible plant that can be instantly dispatched by the grid. In Taiwan, a densely populated island with high electricity demand, a VPP isn't merely a trendy term—it could be crucial for advancing the second wave of energy transition."
Unlike traditional plants requiring extensive land, new constructions, and fuel, VPPs leverage existing equipment for rapid, flexible "power supply" or "load reduction," responding in seconds to grid frequency and load fluctuations. This accelerates renewable energy integration and enhances grid resilience and reliability. Essentially, a VPP acts as a digital "energy aggregator," invisibly coordinating distributed resources, underpinning the energy transition.
