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What is a Virtual Power Plant?

A Virtual Power Plant is a digitally controlled network of decentralized, flexible energy sources. Think of batteries, combined heat and power units (CHPs), solar and wind farms, electric boilers, or smart charging hubs. By intelligently connecting and centrally controlling these assets, a virtual energy plant is created that can rapidly respond to real-time grid needs.

Unlike a traditional power plant, a VPP does not generate electricity itself but manages flexible capacity. For example, by temporarily reducing consumption during peak moments or by switching off solar farms and storing excess energy in batteries when there is a surplus. This makes the VPP a key player in balancing the grid — even when the sun isn't shining or demand unexpectedly spikes.

Want to learn more about grid imbalance?
Read our article: Onbalans op het elektriciteitsnet – wat is het?

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Why is this important?

The energy transition makes our energy supply more sustainable but also more complex. Renewable energy production is less predictable, and local grids are increasingly overloaded. A VPP offers a way to meet these challenges without having to expand the physical grid directly.

By smartly shifting demand, making capacity available, or storing energy at the right moments, we can collectively:

 

     ✅  Relieve the grid during peak loads (peakshaving).

     ✅  Reduce reliance on fossil-fueled backup plants.

     ✅  Create more room for renewable generation.

     ✅  Make the energy system more agile and resilient.

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Scholt Energy’s Role

At Scholt Energy, we are building a Virtual Power Plant that mobilizes the flexibility of our customers for the greater good. We do so with care, transparency, and technical expertise. Together with the customer, we explore what is possible within their operational processes and ensure reliable, data-driven control of their assets.

This control is powered by our in-house developed algorithms, which match available flexible capacity in real time with market prices, grid requirements, and customer agreements.

Whether it’s temporarily curtailing production, smart charging of a battery, or deploying a CHP unit at the right time – the VPP enables us to make optimal use of every connected asset, without requiring the customer’s ongoing attention or disrupting their business operations.

 

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Our Three Flex Solutions within the VPP

Our Virtual Power Plant consists of three flexible services that we deploy strategically to support the energy grid. The right solution depends on available assets and customer profiles. These services can be used separately or combined:

1.  Energy storage

We store energy in batteries and release it back to the grid during shortages or surpluses, helping to absorb peaks and maximize the use of renewable energy.

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2.  Curtailment

In case of excess renewable generation, we temporarily scale back production assets such as solar and wind farms. This prevents grid overload and negative electricity prices, where producers must pay to deliver power.

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3.  Demand response

Demand response involves temporarily adjusting the energy consumption of controllable processes, such as cooling systems, electric boilers, or production lines. Smart charging infrastructures, such as flexible charging hubs, are also part of this. Based on market or grid needs, we briefly lower or increase energy demand — without affecting business continuity.

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What Does This Mean for Asset Owners?

By connecting flexible assets to our Virtual Power Plant, customers actively contribute to a more stable and future-proof energy grid. By doing so, the customer helps prevent grid congestion, creates room for more renewable generation, and supports the energy transition.

At the same time, they gain better insights into their energy consumption, benefit from lower energy costs through data-driven monitoring and smart controls, and — where possible — realize additional revenues from their available flexibility. All this without impacting their core business processes.

Working Together, Smarter

The energy transition places high demands on our electricity grid. Meeting this challenge requires collaboration — between companies, technology, and the market. With our Virtual Power Plant, we bring flexible energy sources together in one smart network. At Scholt Energy, we combine technical expertise with market knowledge to unlock the untapped potential of our customers. Together, we work towards a resilient energy future.

Curious to find out how flexibility can benefit your organization?

We’re happy to think along with you! Speak to our specialists.

Tim van Eijk Vrijstaand