GM, Ford and Google Nest launch a virtual power plant partnership
General Motors (GM), Ford and Google and three founding members of a new Virtual Power Plant (VPP) partnership, known as the VP3.
Formed by the Rocky Mountain Institute (RMI), a nonprofit aiming to drive innovations for energy and resource efficiency, the VP3 was created in recognition of the critical work needed to scale up the market for Virtual Power Plants (VPPs).
Initial funding of the VP3 effort was made possible by General Motors and Google Nest and founding members include Ford, General Motors, Google Nest, OhmConnect, Olivine, SPAN, SunPower, Sunrun, SwitchDin and Virtual Peaker.
Based at RMI, the initiative aims to transform policy, up-scale VPPs and overcome barriers to VPP market growth. With the guidance and support of its members, the partnership will work to:
- Catalogue, research and communicate VPP benefits
- Develop industry-wide best practices, standards and roadmaps
- Inform and shape policy development
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“Our analysis shows that VPPs can reduce peak power demand and improve grid resilience in a world of increasingly extreme climate events,” said RMI CEO Jon Creyts.
“A growing VPP market also means revenue opportunities for hardware, software and energy-service companies in the buildings and automotive industries. For large energy users, VPPs can significantly reduce energy spend while providing new revenue streams.”
The potential of VPPs to drive the energy transition is immense.
According to RMI, VPPs are portfolios comprised of hundreds or thousands of households and businesses that offer the latent potential of their Electric Vehicles (EVs), smart thermostats, appliances, batteries, solar arrays and additional energy assets to support the grid.
“The next 12 to 24 months are critical for policy and program development to seize the potential offered by virtual power plants, and VP3 is here to ensure that the energy transition doesn’t miss a beat,” added Mark Dyson, RMI managing director for carbon-free electricity.
The VP3 is based on institutional spinoffs in the electric sector space that were previously incubated by RMI, including the Clean Energy Buyers Association and the Energy Web Foundation.
