Bridging theory and practice: A comprehensive review of virtual power plant technologies and their real-world applications

Moein Esfahani, Ali Alizadeh, Bo Cao, Innocent Kamwa and Minghui Xu

Renewable and Sustainable Energy Reviews, 2025, vol. 222, issue C

Abstract: The integration of Distributed Energy Resources (DERs), particularly Renewable Energy Sources (RESs), into power systems has seen a significant increase in the past few decades. Utilizing the aggregated capacity of DERs can pave the way for decarbonization. With this respect, Virtual Power Plants (VPPs) have emerged as crucial mechanisms for aggregating and managing DERs. This survey reviews the evolution of the most recent publications on VPPs, examining how they tackle the challenges posed by the high penetration of RESs. The crucial role of VPPs is highlighted in managing varied energy assets effectively, ranging from wind turbines in Canada to solar panels in the United States, and in facilitating the expected shift towards prosumer-based energy models in Europe. Unlike previous works, this paper begins by defining a VPP and detailing its fundamental structure, including its operator, members, cloud structure, and communication architecture. Building on this foundation, we classify recent VPP literature and investigate their innovative approaches to enhancing each component of the VPP structure. Subsequently, we explore the real-world VPP platforms that are currently operational and some of the most notable pilot projects. Using this information, the review highlights the disparities between academic proposals and practical implementations. This paper offers a structured examination of current VPP configurations, the role of information technology in their operations, and the impact of market dynamics on their performance. By synthesizing existing research and identifying gaps, this survey aims to steer future studies towards enhancing VPP frameworks and optimizing their real-world applications, ultimately contributing to a more resilient and efficient power grid.

Keywords: Virtual Power Plant; VPP cloud; VPP communication; VPP architecture; VPP platform; Flexibility management (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.rser.2025.115929

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