Virtual power plants: The power grid of the future relies on electric cars

Virtual power plants (VPPs)  are playing a central role in the transition to cleaner energy. But what is behind the term, how do they work, and why are electric mobility and smart charging infrastructures a crucial part of the picture?

The future of energy is connected

Picture this: millions of electric cars, solar systems, and battery storage units all working together like one giant, smart power plant - flexible, efficient, and sustainable. That’s the power of a virtual power plant.

VPPs make it possible to use renewable electricity more effectively and help keep the power grid stable. The combination of e-mobility, EV charging infrastructure, and virtual power plants creates entirely new opportunities for building a sustainable and reliable energy system.

What is a virtual power plant?

A virtual power plant is a digital network that links together lots of smaller, decentralised energy systems and manages them as one.

These systems can include photovoltaic (PV) systems, wind farms, battery storage units, combined heat and power (CHP) plants, and more and more often, electric vehicles and their charge points. All these parts are connected into a smart network.

The goal? To combine the flexibility of all these systems to keep supply and demand in the power grid balanced in real time. That way, VPPs can help smooth out grid fluctuations, integrate more renewable power, and even take part in the energy market.

Unlike a traditional power plant that generates large amounts of electricity in one place, a virtual power plant brings together many small energy sources. These are coordinated through advanced software so they work like one big plant.

The result is more efficient use of renewable energy. VPPs use artificial intelligence (AI) and machine learning to adjust energy production and consumption in real time.

How does a virtual power plant work?

The technology behind virtual power plants is based on modern IT and communication systems:

Networking:

Decentralised energy systems like solar panels, wind farms, battery storage, and even smart devices like EV charge points are all digitally linked.

Optimisation:

Smart advanced algorithms analyse weather data, consumption patterns, and energy market prices. These predictive tools help plan for when and where energy will be needed.

Control:

A central control centre automatically monitors, manages and adjusts the connected systems in real time based on this analysis.

If there’s surplus energy available, the VPP can store it or feed it into the grid. If there's a shortfall, storage units can discharge or other energy sources can kick in. Surplus electricity can also be sold on the market or used to stabilise the grid by providing balancing power.

The VPP model empowers even small energy producers, like a household with solar panels, to become active players in the energy system. When connected to a VPP, they can efficiently contribute their energy to the wider grid and benefit financially.

Electric mobility: A game changer for VPPs

As electric vehicles become more common, the potential of VPPs is growing fast. EVs aren't just energy users, but they can also act as mobile electricity storage units, especially thanks to bidirectional charging. The connection between EVs, charging networks, and VPPs unlocks exciting new possibilities:

Vehicle-to-Grid (V2G):

Electric cars can send unused electricity from their batteries back into the grid, helping to balance energy demand and supply.

Load management:

Smart charging systems, like those from Virta, make it possible to charge EVs when electricity is cheap or when there's a surplus of renewable energy.

Flexibility markets:

When the flexible charging capabilities of thousands of EVs are bundled together, they can be offered on the energy market, creating new incentives for EV owners.

Why VPPs matter for the energy transition

• Better integration of renewable energies: VPPs help manage the fluctuations of wind and solar power, making the entire system more flexible and efficient.
• Grid stability: By controlling when and how energy is used and stored, VPPs prevent grid overloads and ensure reliable electricity.
• Cost efficiency: Using what’s already available, like EV batteries, reduces the need for costly upgrades to the grid.
• Participation opportunities: Individuals and businesses can actively take part in the energy transition by connecting their own energy systems to VPPs and benefiting from them.
• Lower CO2 emissions: Using renewable energy more effectively means less reliance on fossil fuels and lower carbon emissions.

The challenges & outlook

Of course, there are still some hurdles to overcome. Integrating a wide variety of decentralised systems is technically complex. Issues like data protection, cybersecurity, and regulatory uncertainty also need to be addressed and developed further.

It takes highly developed software and reliable communication networks to keep everything running smoothly. And the legal framework needs to evolve to support new models like VPPs and vehicle-to-grid services. The EU is already working on regulations to help make this possible.

Another key factor is user acceptance. More EV drivers are open to using their cars as part of the energy system, especially when the process is simple and monetary rewards are in place.

Despite these challenges, the benefits outweigh the cons and the progress is moving fast. As EVs and smart charging become more widespread, the role of virtual power plants will only continue to grow.

Virta's smart energy services for virtual power plants

As a leading EV charging provider, Virta is building smart services that make it easy to connect electric mobility with virtual power plants:

Dynamic Load Management

Virta’s platform automatically adjusts charging power based on the grid’s capacity, energy prices, and user needs. This means every charge point can play an active role in a VPP.

Predictive charging

By analysing how vehicles are used and matching that with energy market data, Virta can predict energy demand and help plan charging schedules for maximum efficiency.

Grid services

Virta’s technology enables critical grid services like frequency control and peak load balancing by tapping into connected EVs as a flexible energy source.

For instance, when Finland’s Olkiluoto 3 nuclear power plant had an outage, Virta was able to reduce charging loads in seconds to help stabilise the grid.

Virtual power plants and e-mobility - working together for a sustainable energy future

Virtual power plants are transforming how we produce, store, and use electricity. By linking decentralised systems, energy storage, and consumers into one smart network, VPPs make it possible to get the most out of renewable power while keeping the grid stable.

Electric vehicles and charging infrastructure are key parts of this shift. Together, they’re helping to create a future where energy is not only cleaner but also more resilient and efficient.

Virta is leading the way in making this vision a reality, developing charging systems that are more than just a service, but a vital part of tomorrow’s energy landscape.

With innovative technology and a clear focus on sustainability, we’re one step closer to a world where every electric vehicle plays an active role in the energy transition.