In just six months, more than 100,000 homes have enrolled in a program to create what's being called Canada's largest residential virtual power plant.
VPPs are networks of households and businesses that donate juice from small energy-producing or storage devices (think rooftop solar, batteries, electric vehicles, thermostats) to help support the power grid. Meanwhile, enrollees are paid for their contributions.
The Save on Energy Perks Program is a joint initiative between EnergyHub, a distributed energy resource management systems provider, and Ontario's Independent Electricity System Operator (IESO).
EnergyHub and IESO said that the power from these 100,000 homes can help deliver peak demand reduction of up to 90 megawatts — roughly the equivalent of taking the city of Kingston, Ontario (population of 132,485) off of the grid during peak times, according to Renewable Energy World.
"The scale and speed of enrollment proves that electricity providers and customers can partner on initiatives that provide mutual benefit," said Erika Diamond, senior vice president of customer solutions at EnergyHub, per the publication.
Extreme weather and heavier demand for electricity are making it harder for utility companies in Canada to deliver reliable energy service, Renewable Energy World reported. Of course, this challenge is not unique to Canada.
Meanwhile, VPPs can help improve grid reliability and affordability, according to the Rocky Mountain Institute, which also asserts that they can play an important role in decarbonization, electrification, and health and equity.
For instance, "VPPs help address health impacts from power plant pollution by decreasing reliance on natural gas-fired 'peaker' plants, which disproportionately impact the health of people of color and low-income communities," according to RMI.
Ontario is not the only place jumping onto the potential of VPPs. In 2022, solar company Sunrun launched the United States' first VPP, serving Massachusetts, New Hampshire, Rhode Island, and Vermont.
In Puerto Rico, thousands of households have signed up for a VPP program that could eventually turn into the largest VPP network in North America. And in August 2023, German company sonnen announced what it called Europe's largest VPP, with a capacity of 250 megawatts.
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