In late June 2025, a record-breaking, multi-day heatwave swept across central and eastern parts of the United States, impacting millions. Air conditioners worked overtime, stretching the power grid close to its limits. Usually, a sudden spike in electricity demand at this magnitude could mean widespread power outages or brownouts. But this time, something else happened.
While grid operators and public officials worked around the clock to manage the crisis, another kind of teamwork quietly sprang into action. Behind the scenes, thousands of smart devices — such as thermostats, home batteries, and electric vehicles — joined forces to form what’s known as a virtual power plant, or VPP. Think of it as an invisible energy orchestra, with these devices working in harmony to reduce power use in some areas and even provide extra electricity back to the grid right when it was needed most.
Companies like EnergyHub, which partner with utilities to build and manage VPPs, saw unprecedented participation during the June heatwave. On June 24th alone, EnergyHub’s platform connected over a million devices, shifting an amount of energy equivalent to powering more than 115,000 homes for a full day— or in this case, helping air conditioners run and lights stay on during the worst of the heat.
As America’s demand for electricity grows, especially during extreme weather, virtual power plants are proving to be a powerful tool. By tapping into everyday devices and coordinating their energy use, VPPs help make the electricity grid more reliable, resilient, and sustainable — even on the hottest days.
By the U.S. Department of Energy (DOE)’s definition, “VPPs are aggregations of distributed energy resources (DERs) such as smart appliances, rooftop solar with batteries, EVs and chargers, and commercial and industrial loads that can balance electricity demand and supply and provide grid services like a traditional power plant.”
In simpler terms, a VPP connects many small-scale energy generation, management, and storage devices through advanced software to function as one coordinated, distributed power plant. The DERs that collectively form VPPs can include:
As demonstrated during June’s heatwave, virtual power plants rely on thousands of connected devices working together behind the scenes to keep the grid stable and reliable.
Utility companies or individuals can make small adjustments to each device’s energy use, whether it is a smart thermostat, a home battery, or an electric vehicle. These devices can also supply power back to the grid when needed. For example, a homeowner might raise the temperature on their smart thermostat by a degree or two during peak demand to reduce the amount of energy needed from the grid. Meanwhile, a home battery could send stored electricity back to the grid to help meet demand.
When these thousands of devices act in sync, their combined impact resembles that of a traditional power plant. These VPPs balance the grid by reducing strain during busy times, preventing blackouts, and decreasing the need for expensive backup power plants.
By tapping into energy resources that already exist in our homes and communities, virtual power plants provide a smarter, cleaner, and more flexible way to manage electricity, especially during extreme weather events or high demand periods.
Virtual power plants are changing how we manage energy by turning everyday devices into tools for grid stability and efficiency. VPPs help prevent outages, lower costs, and support a cleaner energy future using resources many of us already have. Embracing this technology moves us toward a more resilient, flexible, and sustainable energy system that benefits everyone. The future of power is not just bigger plants but smarter connections, and virtual power plants are leading the way.
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