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Startups are focusing on integrating renewable energy sources like solar and wind into the grid. This includes:

• Microgrids and distributed energy resources (DERs)
• Virtual power plants (VPPs)
• Energy management systems for renewables
• Ancillary Services

Figure 15: Renewables Projected to Become Largest Electricity Source [13]

Figure 16: VPP, microgrid, and distributed energy sources, Source: ABB. (P: power, Q: heat energy)

The Interconnection Between VPPs, DERs and microgrids

Microgrids, Virtual Power Plants (VPPs), and Distributed Energy Resources (DERs) are interconnected concepts within modern energy management systems.

• Microgrids: These are clusters of low voltage distributed energy resources (DER) and loads within defined electrical boundaries. They operate autonomously or connected to the main power grid, and are primed for integration into Virtual Power Plants (VPPs). They provide localized energy generation and consumption, offering resilience by operating independently of the main grid during outages. They optimize local energy resources and improve energy security.
• Distributed Energy Resources (DERs): These include renewable energy sources or storage systems that are connected at the distribution level or on the customer's premises. They enable the integration of renewable energies like solar and wind into the grid, reducing reliance on centralized power plants and fossil fuels, thus cutting emissions and promoting sustainable energy use.
• Virtual Power Plants (VPPs): VPPs are networks of aggregated energy assets, managed remotely via software for optimal performance. A key service offered by VPPs is Demand Response, enhancing grid reliability and efficiency. They aggregate the capacities of various DERs, enhancing the management of the electricity supply and demand. VPPs maximize resource use and offer services such as demand response, helping balance the grid and prevent outages by adjusting power loads in response to supply fluctuations.