Virtual Power Plants (VPPs) are transforming energy management by offering consumers the ability to participate in the energy market while benefiting financially. A VPP is a collection of small or medium power-generating units that, aggregated and coordinated with grid operations, enable financial and efficiency benefits for consumers and the grid. VPPs connect distributed energy resources (DERs), such as solar panels, batteries, and electric vehicles, that can be located on different types of buildings, such as homes or commercial centres. VPPs turn consumers into active producers while allowing them to sell excess energy back to the grid: users not only save on electricity costs but also generate new sources of income. On top of this, they provide ancillary services to support grid stability and facilitate the optimisation of electricity usage based on market conditions.
Beyond financial advantages, VPPs strengthen the efficiency and reliability of power systems while advancing the fight against climate change. By encouraging the transition to cleaner energy systems, VPPs help integrate renewable energy at a large scale.
These impacts make VPPs a key driver in the modernisation of energy systems, especially in regions like Latin America, where abundant renewable resources—such as solar, wind, and hydroelectric power—can be harnessed.
Countries like Colombia and Brazil are starting to recognise the transformative potential of VPPs, implementing supportive policies and regulations. These measures include frameworks for distributed energy generation, incentives for renewable energy adoption, and the integration of smart grid technologies. Additionally, decreasing costs of IoT devices, smart metres, and energy management systems are making VPPs more feasible, accelerating their implementation across the region.
In Colombia, with our partner CELSIA, BASE aims to accelerate the adoption of Distributed Energy Resources (DERs) through the development and deployment of scalable Virtual Power Plant (VPP) models. This initiative is focused on enhancing the electrical system’s efficiency in the country by promoting energy generation closer to consumption points, thereby reducing the transmission and distribution losses that are characteristic of traditional power systems. VPP models will be directly implemented and tested with real customers.
In Brazil, BASE has had various discussions with utilities to replicate this approach, facilitating the piloting of VPPs with existing customers. The extension into Brazil represents a strategic effort to support VPP development and stimulate regulatory discussions, fostering broader market adoption in the region.
The overarching objective of these pilot demonstration projects is to generate compelling evidence of the advantages of VPPs, both for the participating energy companies and for the wider energy sector. This evidence will be critical to scaling VPP solutions and engaging in constructive dialogue with regulatory authorities.
