Virtual power plants and the households inside them
Demand response, distributed energy resources, virtual power plants and peer-to-peer energy trading appear on 94 recent papers, mostly in economics and AI, and the topic is fading, with 17 in the last quarter against about 23 per quarter before. Aggregators now bid household batteries and heat pumps into power markets. How much flexibility do households really deliver, and what do they get for it?
What prompted this#
Since October 2025, 94 papers carry a virtual-power-plant, demand-response, microgrid, distributed-energy-resource or peer-to-peer-energy keyword (51 in economics journals, 32 in AI, 9 in operations research): "demand response" on 41, "distributed energy resources" on 11, "virtual power plants" on 10, "peer-to-peer energy trading" on 8, "microgrids" on 7. Seventeen were published in July–September 2026 against about 23 per quarter earlier.
Questions#
- When an aggregator calls on household batteries and heat pumps, what share of the contracted flexibility is actually delivered, and does it decline as households override the controls?
- What do households earn per year, and is it enough to keep them enrolled after the sign-up bonus?
- Do virtual power plants reduce the need for peak capacity, or mostly shift payments from utilities to aggregators?
Data that could help#
Aggregator dispatch and delivery records, household enrolment and churn data, and capacity market results.
Next step#
Obtain dispatch and delivered-flexibility data from one virtual power plant programme and measure the delivery ratio and household churn over two years.