Find jobsHire us

Virtual Power Plant: How homes and businesses are powering the grid—and saving everyone money

April 20, 2025
Virtual power plant
Every day, governments scramble to forecast soaring electricity demand, while energy providers teeter on the brink of expensive grid upgrades. Meanwhile, homeowners and small businesses hunt for affordable, green power contracts without knowing they already hold the keys to a more stable, cost‑effective, and low‑carbon energy future.

Meet the new energy entrepreneurs

Alex, a suburban homeowner, never imagined his rooftop solar panels and home battery could do more than shave a few dollars off his monthly bill. He assumed that once the panels were installed and the appliances switched to “eco mode,” his part was done. Maria, who runs a family‑owned café downtown, focused solely on steady supply and predictable rates—green energy seemed complicated and out of reach.

What Alex and Maria both didn’t realize is that by joining a Virtual Power Plant & (Home) Energy Management System (VPP/(H)EMS), they could turn passive assets into active revenue streams. Instead of simply consuming power, they’d become micro‑grid players: generating, storing, and trading electricity on a dynamic platform—all while lowering their own costs.

Turning assets into opportunity

Imagine Alex’s roof as a mini power station. On sunny afternoons, his solar array produces more energy than his family needs. Rather than sending that surplus back into the void, the VPP/(H)EMS bundles Alex’s excess with thousands of other homes. Together, they bid into ancillary‑services markets—helping the grid balance frequency and voltage. In practice, Alex sees on his dashboard exactly when to store energy in his battery, sell it back to the grid at peak rates, or shift his dishwasher and EV charger to off‑peak hours. His family’s bills drop by 20–30%, and every kilowatt they sell helps avoid firing up a costly, carbon‑spewing peaker plant.

Down the road, Maria’s café taps into the same platform. She programs the VPP to reduce coffee‑machine usage by 10% during morning peak, then automatically ramps it back up when rates fall. Before long, her predictable demand‑response payments offset her monthly supply costs, all while promoting a “green café” image that draws eco‑minded customers.

Why governments and providers are paying attention

For policymakers and utilities, the promise is irresistible: Instead of pouring billions into transmission towers that sit idle 80% of the time, they can harness distributed resources to fill capacity gaps on demand. This approach slashes capital expenditures, accelerates integration of wind and solar, and helps countries lock in CO₂‑reduction targets years ahead of schedule. Real‑time data from the VPP/(H)EMS also empowers regulators to craft smarter dynamic‑tariff programs and reward participants for flexibility, rather than forcing everyone onto one‑size‑fits‑all pricing.

Energy providers, too, gain a new frontier of services. By operating the VPP as a platform, they reduce balancing costs, smooth peak loads, and open fresh revenue channels—selling grid‑stabilization services and green‑energy contracts to clients who once felt shut out of the market.

A win‑win‑win for capacity, costs, and carbon

The numbers speak for themselves: virtual power aggregation can defer the need for new peaker plants for years, cutting capital burdens by up to 40%. Consumers like Alex and Maria routinely see 20–30% savings on bills, plus extra income from selling flexibility. And on a system‑wide level, optimized dispatch of distributed assets can knock 10–15% off total power‑sector CO₂ emissions—an essential wedge if governments are to meet Paris‑aligned goals.

Ready to activate the power in your community?

For government agencies mapping future infrastructure and energy providers seeking to reinvent their offerings, the message is clear: The next big resource isn’t underground—it’s on rooftops, in basements, and behind meter screens. By unlocking the VPP/(H)EMS pathway, we can ensure reliable capacity, cut costs for everyone, and usher in a greener, more resilient energy era—one home and one business at a time.

Curious how your jurisdiction or company can pilot this? Reach out to learn how VPP/(H)EMS platforms are already transforming grids around the world—and how you can be the catalyst in your region.

AI horse race
AI is not just changing how we code—it’s starting to dictate what we code with. As large language models (LLMs) become integral to the software development lifecycle, a subtle but powerful shift is underway: languages that are more “AI-native” are accelerating faster than others. And it’s not by design—it’s by data.
Read More
Robot head looking at screen
For decades, the story of UX has been one of interfaces—more beautiful buttons, smoother animations, better onboarding flows. But something bigger is on the horizon. The next UX revolution isn’t about design tweaks. It’s about delegation. Imagine a world where you no longer need to tap, click, swipe, or scroll to get things done. Where you say, “Book me a table for two near the office,” and it just happens. That’s not fantasy—it’s the promise of agentic AI. But here’s the catch: today’s web still assumes the user is a human. And it's holding everything back.
Read More
A reusable cup solution is desperately needed—offices throw away millions of plastic cups every day. The waste adds up, while alternatives remain too inconvenient. That’s when Intelligent Reusables approached us with a bold challenge: make reuse easier than waste. The result? A seamless digital ecosystem with smart dispensers, effortless returns, and real-world impact.
Read More
In today’s fast-moving business landscape, efficiency is no longer optional—it’s critical. European business leaders are under pressure to streamline operations and boost profitability. Our recent work with a leading energy software provider shows how smart tech upgrades can unlock major efficiency gains.
Read More
Virtual power plant
Every day, governments scramble to forecast soaring electricity demand, while energy providers teeter on the brink of expensive grid upgrades. Meanwhile, homeowners and small businesses hunt for affordable, green power contracts without knowing they already hold the keys to a more stable, cost‑effective, and low‑carbon energy future.
Read More
Head office
Markkaweg 2
2153 NB Nieuw-Vennep
The Netherlands
Tech hub
Vrbanja 1 (SCC)
71000 Sarajevo
Bosnia and Herzegovina
Olympia Tech's Trends & Insights Newsletter
Become a part of our community and stay informed on the latest AI, tech and engineering insights
Subscription Form (#4)
Top cross