What is a Virtual Power Plant (VPP)?
It is a network of decentralized energy resources, like solar panels, wind turbines, batteries, EV chargers, and demand-responsive devices, that are coordinated through a central software platform to act like a single power plant.
Benefits:
- Decentralized: Assets are spread out (e.g., homes, businesses).
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Digitally coordinated: Software optimizes when and how assets produce, store, or consume electricity.
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Flexible: Can respond quickly to energy market signals or grid needs.
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Grid-supportive: VPPs help stabilize the grid by balancing supply and demand in real time.
What are Certificates of Origin (CoOs)?
Certificates of Origin, also known as Guarantees of Origin (GoOs) in Europe or Renewable Energy Certificates (RECs) in the U.S., are digital documents that prove 1 MWh of electricity was produced from a renewable source.
Purpose:
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Traceability: They separate the “green” attribute of energy from the physical electricity.
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Transparency: Buyers know exactly where and how their energy was generated.
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Market mechanism: They allow green energy to be bought and sold independently from physical electricity.

Trading CoOs from Virtual Power Plants
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A VPP aggregates thousands of small-scale renewable assets (e.g., rooftop solar).
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It monitors and records production across the network.
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As clean energy is generated, the system issues Certificates of Origin.
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These CoOs can be:
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Sold to companies looking to offset their carbon footprint.
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Traded on renewable energy certificate markets.
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Buyers then retire the certificates to make a claim toward their net zero targets.