Are VPPs really a viable solution for easing strain on the grid? Tesla say yes, and they have big plans

About this episode

The episode discusses the viability of virtual power plants (VPPs) and features insights from Tesla's Colby Hastings and regular guest Amy Myers Jaffy.

VPPs – virtual power plants – continue to spark heated debate. Are they genuinely a fast, affordable way to add capacity to the grid? Or are they an overhyped concept that falls apart when electricity systems are under stress? To find out, host Ed Crooks welcomes Colby Hastings, the senior director for residential energy at Tesla, to unpack what VPPs can and can’t do for the grid. Colby explains how storage-based VPPs can behave very differently from the classic demand response that relies on consumers changing their behaviour. She sets out Tesla’s thinking on VPPs, including its strategies for customer participation, reliability, and pay-for-performance. Tesla’s model includes opt-outs, backup reserve settings, and transparency via an app. Customer choice is an important principle. Regular guest Amy Myers Jaffy also joins the show, and she debates what’s holding VPPs back from scaling everywhere. Electricity market design can be critical for determining how fast VPPs are adopted. Other issues, including concerns about “double compensation” under net metering systems, are also important. Some regions are moving faster than others. Finally, Colby tells us what’s coming next from…

People in this episode

Host: Ed Crooks

Guests: Colby Hastings, Amy Myers Jaffy

Topics covered

• virtual power plants
• grid capacity
• energy storage
• electricity market design
• customer participation
• Tesla

Keywords

• VPPs
• Tesla
• grid
• energy storage
• demand response
• Puerto Rico
• Cybertruck
• electricity market

Mentioned in this episode

Organizations: Tesla

Products: Cybertruck

Places: Puerto Rico

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