A VPP is a network of homes with battery storage connected through smart technology.
VPP's are formed when a set of decentralised units in a power network are linked and operated by a single, centralised control system. Any decentralised unit that stores, produces or consumes electricity can become a part of a VPP.
The central control system in a VPP uses a special algorithm to adjust balancing reserve commands from the transmission system operators and grid conditions, making it similar to a conventional power plant. VPP's can react quickly and efficiently when it comes to trading electricity by adjusting plant operations according to price signals from the power exchanges.