VPP POLICY PRINCIPLES
INTRODUCTION
PURPOSE: This document contains policy principles to support the fair and efficient growth, integration,
valuation, compensation, and advancement of virtual power plants (VPPs) and outlines their benefits to the
electric grid and its customers. VPPs are aggregations of distributed energy resources (DERs) that can flexibly
balance electrical loads and provide utility-scale and utility-grade grid services. This simple set of foundational
principles can support policymakers and energy industry audiences in enabling VPPs.
DESIGN AND USE: These policy principles represent the views and objectives of several parties in the DER and
VPP industries — the Virtual Power Plant Partnership (VP3).i We intend them to guide policy development and
decisions impacting VPP advancement in the short to medium term (one to four years).
We expect policy development to include the initiation and adoption of regulatory proceedings or legislation
directly related to VPPs and DER programs, but also to spur action on topics including integrated distribution
system planning, non-wires solutions, utility business model reforms, wholesale market participation, tariff design,
and energy system digitalization