Definition
A virtual power plant (VPP) is a cloud-coordinated fleet of distributed energy resources — home batteries, EV chargers, hot-water tanks, commercial refrigeration and other flexible loads — that are controlled together so they behave like one larger, dispatchable power plant.
Instead of building a physical peaker plant, a VPP aggregates thousands of small assets and shifts or shares their demand and stored energy to help balance the grid.
How a VPP works
Software forecasts prices and grid conditions, then dispatches each asset — charging batteries when power is cheap or plentiful, easing off during peaks, and where markets allow, exporting or reducing load in response to grid signals. The individual owner’s comfort and rules always come first.
Why VPPs matter
As grids add more wind and solar, they need flexibility to match supply and demand minute by minute. VPPs provide that flexibility from assets people already own, and can pay owners for the service — turning an EV or battery into a small source of income while cutting everyone’s costs.
FYXO and the future flexible grid
FYXO already optimises flexible assets against wholesale prices today. As flexibility markets open up in Ireland and the UK, the same connected assets can participate in grid services. This is an emerging area — final participation depends on market rules and your assets, and FYXO never overrides your safety limits.