Green Mountain Power (GMP), Vermont's largest utility, has implemented a program that replaces traditional power generation with a network of home battery systems. This initiative has led to a virtual power plant becoming the state's largest power source, demonstrating a shift towards distributed energy resources.
The program offers participants two home batteries for a monthly fee of $55 over a 10-year lease agreement. This alternative proved more cost-effective for some residents than purchasing a gas generator, which can cost around $12,000.
For individual homeowners, the battery systems provide energy security, protecting them from power outages, which have become more frequent due to extreme weather events in Vermont. Participants report not losing power since installation.
Collectively, these over 5,500 home battery systems form a virtual power plant, mimicking the capabilities of a traditional power plant. This network enhances grid resilience and provides a cleaner energy source for the state.
The success in Vermont reflects a broader trend in the United States. According to Wood Mackenzie, the US currently has over 40GW of virtual power plant capacity. While this is still smaller than traditional fossil fuel sources, a 2025 US Department of Energy report projects that capacity could expand to 160GW by 2030.
This projected growth would equate to approximately 20% of the country's expected peak energy demand, indicating a significant role for virtual power plants in the future energy landscape.
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Vermont's largest utility, Green Mountain Power (GMP), has established a virtual power plant using over 5,500 home battery systems, making it the state's primary power source. This initiative provides energy security for individual homes during outages and contributes to a cleaner, more resilient energy grid, with national virtual power plant capacity projected to reach 160GW by 2030.