Why customer engagement is the key to VPP success

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The article discusses the critical role of customer engagement in the success of virtual power plants (VPPs) as a solution to the increasing strain on the U.S. electricity grid. With rising energy demands driven by factors like AI and electric vehicles, the grid faces challenges that new generation capacity alone cannot address. However, by leveraging distributed energy resources (DERs) such as residential solar and batteries, utilities can create VPPs that aggregate these resources to enhance grid flexibility and efficiency. The Department of Energy estimates that deploying significant VPP capacity could support load growth while reducing costs and aiding in the transition to net-zero emissions.

To unlock the full potential of VPPs, active customer participation is essential. The article outlines four customer-centric principles to enhance engagement: personalizing communications to resonate with customers, simplifying the enrollment process, clearly communicating the financial and other benefits of participation, and building trust through transparency and control. By focusing on these strategies, utilities can effectively motivate customers to participate in VPPs, ultimately transforming grid challenges into opportunities for a more reliable and sustainable energy future.