The Social and Economic Power of Virtual Power Plants

in Underserved Communities

The Social and Economic Power of Virtual Power Plants in Underserved Communities

Virtual Power Plants (VPPs) are emerging as a transformative force in the renewable energy sector, holding immense potential to address energy insecurity in underserved communities. Let’s explore how VPPs can empower these communities and create a more equitable energy landscape.

Understanding Virtual Power Plants (VPPs)

A VPP is a network of Distributed Energy Resources (DERs)–a smart network of different energy sources working together. Specifically, Energy storage systems can be used to firm lower cost but intermittent renewable supply like wind and solar.

These systems are intelligently connected and managed to act like one big power source.

“We’ve gone from thinking of wireless internet as a luxury to it being as essential as electricity.” says David Chauncey, Viridi’s VP of R&D and author of ‘Powering the Future: Revolutionizing Energy Management with Virtual Power Plants and AI Optimization‘. “Now, with smart, affordable tech, even rural areas can get connected without breaking the bank or dealing with complicated wiring.”

How VPPs Are Changing the Game for Underserved Communities

Promoting Scalability and Flexibility: VPPs are designed to be a lower cost alternative to conventional upgrades and be scalable. Communities can start with what they can afford and grow from there. This is a game-changer for areas where the power grid needs upgrades, upsizing, or modernization.
Creating Economic Opportunities: VPPs can help communities make money. They can sell extra energy back to the grid or get paid for using less power during peak times.
Secondary Effects: Availability of low cost, reliable (when including battery storage with wind or solar), green, affordable power fuels development, driving economic growth and prosperity for communities at an accelerated rate.

Addressing Key Challenges

Underserved communities face unique challenges that have historically limited their access to reliable and affordable energy. VPPs, combined with targeted policy measures, can play a crucial role in overcoming these obstacles:

Energy Poverty: VPPs can help make clean energy more affordable for people. Lower bills and steady power supply? That’s a game-changer for low-income households.
Lack of Access to Capital: Recognizing that the upfront costs associated with renewable energy technologies can be prohibitive for many underserved communities, initiatives such as grants, low-interest loans, and innovative financing models are essential to bridge this gap.

Our team joined clean tech experts at RECESS24 to tackle the $100 Million Question: How can Virtual Power Plants, Carbon Capture, and Energy Storage be made accessible to historically underserved communities? This discussion is crucial for advancing energy justice and building a more equitable clean energy future– It’s all about creating fairer, cleaner energy for everyone.

Help is on the way. These programs are designed to support rural energy independence and resilience, often by funding renewable energy and storage solutions.

Rural Energy for America Program (REAP) – Helps rural communities and agricultural producers invest in energy storage and renewable energy.
USDA Rural Utilities Service (RUS): The RUS offers loans and grants to improve energy infrastructure in rural communities, including the development of renewable energy and energy storage projects.
Appalachian Regional Commission (ARC) Power Initiative: Focuses on rural economic development in the Appalachian region, including support for energy storage and renewable energy projects.
Tribal Energy Program: Managed by the Department of Energy, this program funds energy storage and renewable energy projects in Native American and Alaskan Native tribal communities.
National Rural Electric Cooperative Association (NRECA) Grants: Provides support to rural electric cooperatives for innovative energy projects, including energy storage, through partnerships and federal funding programs.
The Justice40 Initiative: Seeks to direct 40% of federal investment benefits, including in energy storage, to disadvantaged communities. The initiative addresses historical inequities by prioritizing clean energy infrastructure, with tools like the Climate and Economic Justice Screening Tool (CEJST) ensuring equitable resource distribution.

VPPs in Action–Making a Noticeable Difference in Underserved Communities Across the Country:

Rural Farms: VPPs are empowering farmers in remote areas to achieve energy independence. By generating their own clean energy and reducing reliance on traditional grids, farms can lower operating costs, increase resilience, and contribute to a more sustainable agricultural sector.
Holy Cross Co-Op: The Holy Cross Energy Cooperative showcases the successful implementation of a VPP model in a rural setting. Participants in Peak Time Payback reduced 12 MW of peak demand, earning $109,549 in payments and added 3.045 MW of dischargeable capacity, cutting costs for ALL members.
Navajo Sun Power!: Navajo Transitional Energy Company (NTEC) plans to install 3 kW solar photovoltaic systems with battery storage on up to 75 off-grid homes in the Navajo Nation, where many lack reliable electricity. Building on 24 previous installations, this project aims to provide essential power, reduce energy burden, and improve air quality for remote communities.

A Brighter Energy Future

VPPs are more than just a cool tech innovation. They’re a path to a fairer, cleaner energy future.

Environmental Justice: VPPs can help reduce pollution in communities that have been hit hardest by dirty power plants.
Community Resilience: With local, reliable energy, communities can better weather storms and power outages.
Economic Empowerment: VPPs can create jobs and spark economic growth in areas that need it most.

At Viridi, we’re walking the talk with our GreenForce initiative. We’re creating hundreds of good jobs, with most of them going to folks from underserved communities. But we’re not stopping there – we’re also helping with housing, legal help, healthcare, and more. It’s all about breaking down barriers and lifting communities that have been left behind.

As we face the challenges of climate change and work towards a fairer society, VPPs are a powerful tool for positive change. By making these innovative energy solutions available to everyone, we can build a brighter, more just future for all of us.

Sources:

National Renewable Energy Laboratory (NREL)
The Justice40 Initiative
Department of Energy’s (DOE) Loan Programs Office (LPO) Tribal Energy Finance Program (TEFP)
Grid-Scape
RECESS24
The U.S. Energy Information Administration (EIA)
U.S. Department of Energy