During another year of record-setting temperatures, virtual power plants (VPPs) played a vital role in maintaining a reliable, affordable, and increasingly decarbonized grid across North America.

EnergyHub’s clients called on their VPPs over 2,000 times during the 2024 summer season, a 26% increase over 2023. These events shifted over 44 GWh of electricity out of peak demand periods, equivalent to the annual output of approximately five fossil fuel peaker plants. All together, these efforts saved over 16,500 tons of CO2 emissions. That’s like taking 3,800 cars off the road for a year!

“VPPs are both a critical tool today and a cornerstone for the grid of tomorrow,” said Seth Frader-Thompson, President of EnergyHub. “By leveraging new strategies like dynamic load shaping, our clients are unlocking more value for the grid and their customers.”

With more than 1,500,000 devices under management, EnergyHub’s flexibility programs are a testament to the growing impact that demand-side management solutions can make at every level of the grid.

VPPs made record-breaking impact across the country

VPPs weren’t just dispatched more frequently than ever last year — they also provided flexibility at unprecedented scale. The EnergyHub Edge DERMS managed more than 2,000 MW of dispatchable flexibility for over 70 utilities. In 2024, four of those utility programs surpassed 100,000 enrolled devices.

With these growing resources, EnergyHub delivered more than 1 GWh of demand reduction across all programs on three different days in 2024.

“These milestones underscore the shared commitment of our clients and device partners to building scalable, customer-centric programs,” said Frader-Thompson. “Together, we’ve demonstrated the immense potential of demand flexibility.”

Building on demand response with dynamic load shaping

While traditional demand response has long been used to manage summer peaks, EnergyHub’s clients pushed the boundaries of what VPPs could do in 2024 by introducing dynamic load shaping. With dynamic load shaping, the EnergyHub platform uses AI-driven optimizations to achieve predetermined load profiles with distributed energy resources (DERs).

National Grid used dynamic load shaping to orchestrate 20,000 thermostats and 2,400 residential batteries during a four-hour event. By leveraging cross-DER dispatch, National Grid achieved a flat load shape and minimal snapback, ensuring effective load shedding during the New England ISO’s peak hours.

Fig. 1 Average VPP output compared to target (National Grid)

Arizona Public Service (APS) also utilized dynamic load shaping to help manage the variable nature of renewable generation. By aligning DER dispatch with solar availability and customer time-of-use (TOU) rates, APS achieved over seven hours of increasing load shed with no snapback. APS also called its first locational dispatch event this summer after a storm caused significant damage in the Phoenix area. By dispatching groups of DERs associated with specific substations, APS was able to maintain reliability during the repairs.

Fig. 2 VPP output compared to target (APS)

Beyond thermostats: EV managed charging measures up, batteries take off

With EV sales back on the rise, utilities need flexible managed charging solutions that can meet the needs of drivers and the grid in the years ahead. In 2024, EnergyHub tested the effectiveness of its active managed charging solution and found that 91% of charging occurred during off-peak hours and distribution-level peak demand was reduced by up to 30%.

These grid-aware charging optimizations were carried out automatically and ensured each driver received their desired state of charge by the time needed, without overloading the grid.

Fig. 3 Average weekday EV load: Managed charging “actual” vs. unmanaged charging “baseline”

EnergyHub also launched four new battery VPP programs with utilities in 2024. These programs not only harness the unmatched flexibility of residential batteries, but also enable greater grid value through cross-DER dispatch and optimization.

Pioneering the next generation of VPPs

In 2024, VPPs once again showed that they are meeting the grid’s emerging challenges head-on. EnergyHub is committed to developing solutions that unlock the full potential of VPPs for utilities and their customers as we work toward a decarbonized, distributed energy future. 

To learn more about the future of VPPs, download our latest white paper.