Sooner Than You Might Think: Virtual Power Plants Are Coming to Save the Grid

So far, about 3,500 customers have signed up. They have purchased a sonnen battery system, which starts at about $10,000, and received rebates that start at $1,920.

Then, at times when electricity demand is highest, the utility has the ability to draw electricity from the batteries to support the grid. Customers receive credits on their bills for the electricity they contribute.

The Rocky Mountain Power program is one of many virtual power plants across the country. Some other projects, all from the last two years:

·  In California, the utility Pacific Gas & Electric is working with Sunrun, a solar and battery storage company, to enroll 7,500 customers to be part of a virtual power plant with capacity of up to 30 megawatts.

·  Also, in California, sonnen is working on a virtual power plant with Baker Electric Home Energy, aiming to sign up 5,000 households by the end of 2025.

·  In Vermont, the utility Green Mountain Power has a virtual power plant with more than 4,000 batteries in customers’ homes and businesses, and is in the process of expanding the program.

·  The utility Hawaiian Electric is working with the energy company Swell Electric on an 80-megawatt virtual power plant that will serve customers on three Hawaiian islands.

Richetta started at sonnen in 2016 following some time at Tesla, where he was sales manager for the Powerwall battery storage system.

He was part of sonnen’s management in 2019, when the company agreed to be purchased by Shell, the London-based oil giant.

Environmental advocates have warned the public to be skeptical when oil companies tout their clean energy investments. Ken Cook of the Environmental Working Group summed up this view in 2022, when he said, in response to evidence at a Congressional hearing, that “Big Oil has zero intention of divesting from fossil fuels” and is instead “engaging in greenwashing tactics.”

I asked Richetta about this criticism. He said the sale to Shell has been good for sonnen, giving the company the resources to expand much more than it could have on its own.

“By next year, we will have grown approximately five times since we were acquired,” Richetta said. “Shell absolutely, positively is not greenwashing.”

Much of sonnen’s expansion has been in the United States, where the company has about 140 employees and a manufacturing plant and headquarters in Stone Mountain, Georgia, part of a global head count of about 1,500.

We are in the early stages of realizing the potential of virtual power plants. Clean energy researchers speak of a future in which batteries are just one of several resources that can be turned into networks, with nationwide capacity that would be in the tens of gigawatts.

RMI, the research and advocacy group, sketched out what this might look like in a report this year showing the potential for 61.9 gigawatts of capacity in the United States in 2030.

Batteries would have a small share, 9.9 gigawatts. Electric vehicles would have 17.3 gigawatts, most of which would be from reducing the use of EV charging during times of high electricity demand. The bulk of the capacity would be in buildings, including 19.8 gigawatts in homes and 14.9 gigawatts in businesses, most of which would come from using networks to reduce electricity demand by adjusting thermostats, among other measures.

Mark Dyson, a managing director at RMI, told me that he and the other co-authors of the report were deliberately broad in defining what a virtual power plant can be, including resources that can send electricity to the grid and those that can reduce demand. The common element is that all of the resources are located at homes and businesses and have the ability to work in tandem to make the grid more reliable.

“Virtual power plants can help us keep the lights on and keep electricity affordable, using devices we’ve already bought and paid for, without building new power plants,” he said.

Even if you don’t define it so broadly and focus just on batteries, 9.9 gigawatts, or 9,900 megawatts, is huge, like a dozen natural gas power plants. I don’t have a good number on how that compares to current virtual power plant capacity, which is likely less than 1 gigawatt.

If virtual power plants come anywhere close to that kind of growth, sonnen is among the companies that stand to benefit the most.

Dan Gearino covers the midwestern United States for Inside Climate News, part of ICN’s National Environment Reporting Network.This story was originally published by Inside Climate News and was reproduced in Grist as part of the Climate Desk collaboration. You can subscribe to its weekly newsletter here.