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The so-called virtual power plant market is moving too slowly, according to energy executives and investors at the RE+ conference this week in Los Angeles. 

Why it matters: VPPs could make the grid more resilient and cleaner, while saving major dollars and energy.

Catch up quick: VPPs use devices like smart thermostats and EVs to aggregate energy load, helping utilities manage the grid. 

Zoom in: "We have a long way to go in terms of an exponential curve ahead of us," said David Crane, the Under Secretary of Infrastructure for the Department of Energy, referring to VPPs during a session. 

"How do we make this thing really take off?" asked Crane to a room of solar energy industry attendees. The DOE put out a report last year that highlights the challenges and opportunities for VPPs.

The VPP industry has faced consolidation and even a shutdown this year as companies struggle to reach scale. Investors with VPP portfolios are wondering how long it'll take for their startups to grow substantially. 

Grid stressors, like heat waves and soaring data center demand, could help put a spotlight on the need for VPPs, said the panelists. 

Zoom out: The slow pace of VPPs was just one topic at RE+, the largest clean energy conference in North America, which saw 40,000 attendees traverse across the Anaheim convention center this year.  

As attendees walked the massive show floor, filled with the latest solar panels, batteries, and grid gear, the weather outside in Anaheim hit a sweltering 102°F on the first day, and over 111°F in prior days.

As in previous years data center load growth was front and center, as companies tweaked their products, or launched new ones, to attract data center customers. 

Crane said he's seen a change in the Big Tech companies that travel to Washington looking to get access to more electricity for data centers. "As they come this year, they recognize that they need to be deeply involved in the solution," said Crane.  

Between the lines: The unexpected growth in demand, from EVs, new manufacturing and data centers, is changing the dynamics for utilities, said energy execs.

"I cannot be more optimistic because there's been a fundamental change, and that's because we now have load growth," said PG&E CEO Patti Poppe during a session, using the term "good load."

The new load is "a legitimate opportunity to fund the transition," said Poppe: "This is the best time to ever be in this industry."

The bottom line: The massive growth of the solar sector was on full display at the event. Over the last two years, the solar industry has added 75 GW of new capacity to the U.S. grid.

Reporter's notebook: VPPs, "good load" and a heat wave

The unexpected growth in demand is changing the dynamics for utilities

The RE+ solar conference kicked off in Anaheim, California this week with 40,000 attendees.

The RE+ solar conference kicked off in Anaheim, Calif., this week with 40,000 attendees. Photo: Katie Fehrenbacher/Axios

Solar power

The so-called virtual power plant market is moving too slowly, according to energy executives and investors at the RE+ conference this week in Los Angeles. Why it matters: VPPs could make the grid more resilient and cleaner, while saving major dollars and energy.

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Reporter's notebook: VPPs, "good load" and a heat wave

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