Xcel Energy, Itron and Tesla to Deploy Advanced Virtual Power Plant in Colorado
Xcel Energy is partnering with energy management technology firm Itron and Tesla to create an advanced virtual power plant (VPP) utilizing residential energy storage capacity in Colorado.
The VPP will expand Xcel’s existing VPP program, Renewable Battery Connect, increasing the number of Tesla Powerwall batteries that can be dispatched during an event and enabling the utility to more efficiently stabilize the grid during peak demand periods.
Itron’s IntelliFLEX, a grid edge intelligence solution that enables energy providers to aggregate and localize management of distributed energy resources (DERs), will help Xcel manage and dispatch solar energy stored in participating Tesla Powerwall home battery systems.
“Xcel Energy is taking important steps to meet the increasing energy demands of a growing economy and is committed to providing more energy options for our customers,” said Emmett Romine, vice president, Customer Energy and Transportation Solutions at Xcel Energy. “This collaboration will deliver renewable, solar energy when our customers need it most,” he added.
Aggregation harnesses the power of many
VPPs use an intelligent control system and bidirectional technology to aggregate energy from networked resources located at multiple sites, such as rooftop solar systems, batteries, electric vehicles (EVs) and other distributed energy resources (DERs).
Advanced VPPs also incorporate advanced technologies and algorithms such as real-time optimization, dynamic control and predictive analytics, creating a flexible power network that can bundle hundreds or thousands of discrete power sources into one that can be dispatched during times of peak demand, just like a traditional centralized power plant.
In Colorado, Itron’s intelligent distributed energy resource management system (DERMS) will be directly integrated into Tesla’s battery storage platform to streamline DER orchestration, simplify customer enrollment and provide real-time grid benefits such as event dispatch and program performance optimization.
“Utilities need better data, more insights and the ability to quickly take actions based on near real-time data. This collaboration highlights the importance of energy provider awareness at the grid edge and how we can help manage the future grid, especially as communities reach 100% electrification,” said Don Reeves, senior vice president of Outcomes at Itron.
Sunny days for solar
Colorado is an ideal location for virtual power plant development. With more than 300 sunny days a year, the state has 4,458 MW of installed solar, according to the Solar Energy Industry Association, ranking it 14th in the nation.
One of the first states to enact a renewable energy standard, Colorado has multiple programs to support rooftop, community and utility-scale solar projects.
Colorado is also one of the top states for EV sales. In 2024, 25.3% of all new car sales in t he Rocky Mountain state were electric or plug-in hybrid electric. EV batteries can also be integrated into virtual power plants.
VPPs are part of the Value Proposition for Microgrids
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