NeoGrid® AI

Germany compared to other countries: Where do we stand with virtual power plants?

By

David Wölfle

8.8.2025

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Virtual power plants function like an orchestra of thousands of small electricity sources: solar panels, battery storage, heat pumps, and electric vehicles working together - controlled by a digital platform.

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The result? More flexibility, less CO₂, and lower electricity costs.

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But how well does this interplay actually work in Germany?

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And what are other countries doing better?

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Germany: Great Potential, Little Practice

Imagine: Ten electric cars on your street, a solar system on every roof with storage in the basement. Sounds like the energy future, right?

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The problem: In Germany, each device operates independently.

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No coordination, no smart control, no real added value.

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Why is that?

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  • The technology exists - but the regulations are complicated
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  • Too many small grid operators unable to keep pace with energy system modernization
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  • Smart tariffs are rare, and both incentives and infrastructure are lacking
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  • Bureaucracy stifles many good ideas

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Pioneering projects like SonnenVPP with home storage or NeoGrid®AI from Ostrom already show how it could work. But we're still far from making this an everyday reality.

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Denmark: Flexibility That Pays Off

It's completely different in Denmark.

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There, the electricity market is open to everyone - including households.

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An example: Your heat pump only runs when electricity is cheap. Your electric car charges automatically at night—and feeds power back to the grid during the day when needed.

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And you get paid for it.

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Virtual power plants are already partially established here, with households reaping the benefits.

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They regulate frequencies, relieve grid stress - and turn electricity customers into active participants.

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Netherlands: Clear, Fast, Digital

The Netherlands show how it can be done simply.

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Everyone gets a smart meter. The rules are straightforward.

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Startups like Sympower or Jedlix connect electric vehicles and batteries to create real power plants.

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Result: Solar power is rarely curtailed. Households benefit from low prices.

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Grid operators work hand in hand with aggregators - the operators of virtual power plants.

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Switzerland: Small but Well-Connected

In Switzerland, municipalities often drive the transformation.

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They build local networks where households exchange electricity and store it collectively.

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The whole system runs on a unified platform with clear data standards.

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Simple. Secure. Transparent.

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Virtual power plants are also more widespread here than in Germany.

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Great Britain: Real-Time Electricity for All

In Great Britain, many households are already deciding today:

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When do I charge my car? When do I sell electricity?

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With dynamic tariffs, control apps, and genuine customer participation.

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The electricity system responds flexibly to supply and demand - in real time.

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And those who participate save real money.

Australia: The Future Live

Australia is considered a pioneer.

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Why? Because electricity customers there become true "prosumers" - both producers and consumers simultaneously.

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Tesla has built a virtual power plant from thousands of home batteries.

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When the grid fluctuates, the batteries automatically kick in. Without anyone having to lift a finger.

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The government actively supports such projects.

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Result: Cheaper, cleaner electricity - stably and efficiently distributed.

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Conclusion: Germany Has the Technology - Now We Need Courage

We have millions of connectable devices.

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We have the know-how and strong companies.

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What's missing: Clarity, courage, and incentives.

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Germany must...

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  • make smart tariffs simpler,
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  • reduce bureaucracy,
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  • and promote digital platforms that integrate households into the electricity system.

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Because ultimately: The more people participate, the more stable our grid becomes - and the cheaper electricity is for everyone.

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