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Virtual Power Plants: The Ultimate Grid Test

Originally published on: December 17, 2025
▼ Summary

– The Huels test is a new benchmark for virtual power plants (VPPs), requiring their performance to be indistinguishable from a conventional power plant to gain grid operator trust.
– Virtual power plants are networks of distributed devices like solar panels and batteries that collectively manage electricity supply and demand, offering a flexible alternative to building large power plants.
– VPPs are seen as a timely solution to meet surging electricity demand, potentially providing significant grid capacity by 2030 without drastically increasing costs or requiring major new infrastructure.
– Passing the Huels test involves four levels, with level 3 representing the ability to function automatically and reliably like a gas peaker plant, a milestone developers are still working toward.
– While VPPs can currently mimic peaker plants that run infrequently, matching the constant output of a full-scale gas or nuclear plant would require integrating long-duration energy storage into the network.

Power grid operators are facing a new kind of challenge, one that echoes a famous thought experiment from the last century. Virtual power plants, or VPPs, are emerging as a critical tool to balance electricity supply and demand by linking together distributed resources like home batteries, rooftop solar, and smart thermostats. The pressing question for utilities is whether these digital networks can perform as reliably as the traditional gas or coal plants they aim to supplement. A novel benchmark, inspired by Alan Turing’s “imitation game,” has been created to provide an answer. This evaluation, known as the Huels test, asks a simple but profound question: can a grid operator tell the difference between power from a VPP and power from a conventional plant? If they cannot, the VPP passes.

The concept arrives at a pivotal moment. Soaring electricity demand, particularly from data centers, is straining generation capacity while the construction of new large-scale plants faces delays and political hurdles. VPPs offer a potential path to add significant gigawatts of capacity to the grid rapidly and without dramatically increasing consumer costs. According to a U.S. Department of Energy analysis, these systems could supply up to 160 gigawatts of capacity nationwide by 2030, meeting a substantial portion of peak demand. They also present a way to defer costly upgrades to distribution infrastructure, sidestepping supply chain issues.

However, for VPPs to fulfill this potential, they must first earn the trust of the grid operators who rely on predictable performance. The Huels test, developed by the Brooklyn-based company EnergyHub, is designed as a trust-building exercise. It consists of four progressive levels. The initial stages require a VPP to demonstrate basic capabilities, like reducing demand during peak times by adjusting smart thermostats or responding to price signals. Human oversight is still involved at these points.

The true milestone is reaching level three, where a VPP operates automatically and its performance becomes indistinguishable from that of a gas “peaker” plant, a facility activated only during periods of high grid stress. The highest level, four, involves fully autonomous operation that adjusts output continuously based on a stream of real-time data. Passing level three is the equivalent of acing the Turing test for the grid. As EnergyHub’s chief scientist Paul Hines explains, the goal is to “fool a grid operator into thinking that the thing that’s actually solving their problems is this aggregation of many devices instead of a big gas plant.”

Mimicking a peaker plant, which may operate only about five percent of the time, is a logical starting point for VPPs. Their aggregated resources, like demand response or short-duration battery storage, are well-suited to providing those brief, critical bursts of power. The far greater challenge would be emulating a baseload plant that runs nearly continuously. Achieving that would necessitate VPP networks integrated with long-duration energy storage, a technology still scaling up.

EnergyHub has begun putting its own systems through this rigorous evaluation. In pilot programs with utilities in Arizona, North Carolina, and Massachusetts, the company’s software coordinated rooftop solar and smart thermostats to “pre-cool” homes during sunny afternoon hours. This strategy helped flatten demand during the critical early evening period when solar generation drops just as household energy use spikes. These successful trials have positioned the company’s technology between levels two and three on the Huels scale. The final push to consistently pass level three, Hines notes, is a journey that will likely take a few more years of refinement and demonstration.

(Source: Spectrum IEEE)

Topics

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