BASE Foundation, in collaboration with partner Integrate to Zero, launched a new webinar series to advance the topic of grid flexibility,, “From Concept to Reality: Accelerating the development of Virtual Power Plants”. This series delves into the practical steps and frameworks required to deploy decentralised energy systems globally.

The first session “Demystifying Virtual Power Plants – Models, Enablers, and Early Experiences” was held on February 24 2026, to shed light on the key ingredients needed to bring Virtual Power Plants (VPPs) to life and stories from implementation around the world. A panel of experts from NGOs (BASE, Integrate to Zero) and pioneer utilities (Auren Energia, Celsia Energia, Octopus Energy) presented active pilot projects in Latin America, established operational systems in the United Kingdom, and discussed the regulations needed for VPPs to thrive.

SETTING THE STAGE:

Driven by the urgent need to decarbonise and the rise of renewable technologies, the global energy landscape needs a profound structural transformation. For decades, the industry relied on a unidirectional grid where power flowed exclusively from centralised, large-scale power stations to passive consumers. The widespread adoption of intermittent and scattered renewable energy systems has introduced unprecedented complexities into the system, demanding a dynamic, bi-directional network where electricity flows from buildings, vehicles, and industries back into the grid.

At the heart of this shift are Virtual Power Plants. A VPP acts as a digital platform that orchestrates Distributed Energy Resources (DERs), such as rooftop solar, batteries, and electric vehicles, allowing them to function collectively to optimise energy consumption and supply. Via energy production, storage and consumption adjustment allowing optimised dispatch, DERs provide an energy output equivalent to that of the traditional power plant. Indeed, these systems can provide crucial real-time energy management to shift energy demand, securing grid reliability through actively managing grid regulation and providing voltage compensation. As grid operators face challenges in balancing the electricity system, VPPs can step in to meet  critical flexibility needs by delivering these stabilising ancillary services directly to the grid. With the global VPP market currently valued at around USD 6 billion and expected to rise to USD 30 billion by 2030, the economic and structural implications are profound.

Leading providers are already demonstrating the viability of this technology at scale: the United States currently boasts 38 gigawatts of VPP capacity, China has set an initial target of 50 gigawatts by 2030, while the UK’s Clean Flexibility Roadmap estimates that total flexibility capacity will reach 55.2 GW within the same timeframe. To capitalise this economic and environmental opportunity, governments, regulators, and utilities must now pivot from conceptual discussions to practical, market-driven implementations.

ASSESSING READINESS: THE SCALE OF OPPORTUNITY AND INNOVATION – INSIGHTS FROM DAN HAMZA-GOODACRE

Transitioning to decentralised grids demands a deep understanding of market readiness. Dan Hamza-Goodacre, Chief Energy Officer at Integrate to Zero, detailed the pressing need for VPP expansion. He presented an evaluation framework, “VPP Readiness Index” developed by I2Z together with Blunomy. Dan outlined the pivotal factors shaping this rapid evolution:

• The VPP Readiness Index: This diagnostic framework was designed to evaluate if a country is prepared to scale a Virtual Power Plant (VPP) market. It analyses countries across technical, regulatory, and commercial dimensions. The main pillars include resource availability, flexibility needs, market attractiveness and existing structure, regulatory environment like data protection and privacy, and evaluating the role of system operators. 
• First Readiness evaluation: This diagnostic tool evaluated 12 nations from different continents. It helps in understanding how well the way is paved for the implementation of VPPs in a country. The index ranked Australia as number one, followed by France and the UK. But the primary insight, emphasised by Dan, is not who secured the top spot but rather the level of readiness of countries like Brazil or Colombia, that people might not expect to be so advanced.
• Beyond a concept: Dan emphasised that Virtual Power Plants (VPPs) are not theoretical but are actively happening now. With the current market already valued at an estimated USD 6 billion, VPPs are a tangible, functioning reality, not just a futuristic concept.
• Rapid innovation: The sector is characterised by swift technological and commercial advancements. From vehicle-to-grid applications expanding into two-wheelers, to subscription-based battery models requiring zero upfront investment, artificial intelligence and software are fundamentally reshaping how energy assets are managed.

COLOMBIA’S PILOT: ORCHESTRATION AND MICROGRIDS – INSIGHTS FROM JUAN ESTEBAN BERNATE

Implementing VPPs requires robust digital architecture and testing. Juan Esteban Bernate, Innovation Project Implementation Engineer at Celsia, explained his company’s approach to building scalable orchestration capabilities in Colombia. He highlighted several key stages in their development:

• Phase 1 – Technological Validation: The first stage is centered on the Yumbo microgrid, a localized, small-scale energy system located in Colombia, acting as a testing ground that combines different types of energy equipment like solar panels and batteries. Utilising cloud computing and data analytics tools, the orchestration system acts as a smart brain and keeps an eye on all the connected energy resources. When the main electricity grid experiences an availability problem, the operator sends a digital request to the smart brain, asking for a specific amount of energy from the connected resources for a certain price to balance out the grid.
• Phase 2 – Real-World Implementation: Managed by Celsia’s digital arm, enerBit, this phase rolled out Advanced Metering Infrastructure across a residential complex in Tolima. Transitioning from analogue meters and flat-rate energy billing, to near real-time data collection and flexible billing based on live consumption, is the fundamental prerequisite for offering demand response incentives in the future.
• Regulatory Milestones: Recent Colombian policy updates are establishing the critical groundwork necessary for the future flexibility markets. Law 1715 from 2014 regulates the integration of renewable energy systems, such as solar and wind systems, into Colombia’s national grid. More importantly, CREG Resolution 101 054 of 2024 recognises consumers as possible active participants with technical capacity in the market.

RESIDENTIAL VPPS IN BRAZIL: SOLVING CURTAILMENT – INSIGHTS FROM TANIA NALBORCZYK

In specific markets, VPPs offer a solution for today’s grid inefficiencies. Tania Nalborczyk, VPP Project Manager at Auren Energia, outlined how aggregation can address Brazil’s unique energy challenges. Her insights revealed:

• The storage problem: Brazil already produces an immense amount of renewable energy through solar panels and wind turbines. But there is a mismatch between the time of high energy production during daytime and when demand actually rises in the evening, a so-called “duck curve”. Grid operators have no choice but to literally turn off wind turbines and solar farms to prevent power surges and grid failures, resulting in a nearly 20 percent loss due to a lack of proper energy storage. This curtailment is the direct, negative consequence of the duck curve.
• Industrial vs. residential aggregation: While heavy industry already engages in multi-site demand response programs, Auren is expanding the frontier by trialling residential-level VPPs to tap into the country’s 80 million households in the future. To make participation as easy as possible, they built a digital platform that interacts with consumers using the most common communication tools.
• Testing consumer behaviour: An active pilot spanning three major Brazilian cities with more than 100 residential participants from initially over 1000 interested consumers. By utilising familiar communication channels and instant digital payment systems (e.g. PIX) to reward customers for reduced energy consumption during peak times, the project demonstrates strong consumer willingness to participate in grid balancing.

DELIVERING VPP SERVICES AT SCALE: CUSTOMER ENGAGEMENT AND AUTOMATION – INSIGHTS FROM KIT FITTON

Operating in a highly developed market, Kit Fitton, Global Strategy Manager at Octopus Energy, emphasised the importance of transferring systemic value back to the end-user through various engagement tiers. Octopus utilises three core methods:

• The “Saving sessions” campaigns: Using simple notifications,  Octopus alerts customers during times of grid stress to offer electricity bill discounts against a consumption reduction. These alerts have mobilised over 1.6 million users, successfully displacing massive amounts of peak power demand.
• Pricing signals: Dynamic tariffs expose consumers to fluctuating energy costs, naturally incentivising them to shift heavy usage, like EV charging or heating, to cheaper, off-peak periods.
• Automation: By granting the utility direct control over smart devices and allowing slight adjustments to their consumption, customers effortlessly optimise their usage depending on grid conditions. Octopus currently manages over 400,000 connected devices, yielding 2.5 GW of flexible capacity and delivering profound bill reductions for participants.

KEY TAKEAWAYS FROM THE PANEL DISCUSSIONS:

• The Power of incentives: Successful VPP scaling hinges on adequate financial compensation. Participants must be financially rewarded for the systemic value they provide. Paying people for their flexibility drives profound system-wide benefits.
• Solving Brazilian curtailment: Tackling Brazil’s 20 percent renewable energy loss is critical, and virtual management mechanisms like VPPs can help mitigate this loss. The imminent arrival of Distribution System Operators (DSOs) and expanding battery options will dramatically accelerate market participation this year.
• Essential regulatory changes for Colombia: To unlock full flexibility, Colombia must evolve beyond demand-dictated pricing, establish clear operational guidelines for DER integration, and build sufficient market capacity to utilise demand shifts effectively.
• The need for flexibility standards: Customised integrations for specific vendor technologies can lead to lock-ins in their ecosystems. Regulators have to define universal flexibility standards making sure devices from different distributors can be operated by the same management system. This interoperability is crucial for VPPs to grow in the future and to secure an equitable market.
• Empowering Regulators: Governments must grant regulatory bodies the explicit mandate to overhaul traditional electricity system operations, ensuring distributed assets can compete fairly alongside conventional power plants.

Missed the live session? Watch the replay of our deep dive into Demystifying VPPs and sign up for the event update mailing list to stay informed about the next event in our series.

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