A Virtual Power Plant aggregates distributed energy resources—like solar panels, batteries, wind turbines, and flexible loads—into a coordinated network that can provide grid services at scale. Instead of building a large centralized power plant, VPPs network thousands of small assets to act as one. **1. Market-Participation VPPs** (Third-party aggregators) - Aggregate customer assets and sell capacity into wholesale markets - Examples: Stem, Swell Energy, Next Kraftwerke - Revenue from energy arbitrage + ancillary services **2. Utility-Led VPPs** - Utilities contract with aggregators for grid services - Examples: SCE partnerships, PG&E programs - Revenue from capacity payments + performance incentives **3. Asset Owner VPPs** (What BWE appears to be) - Own/operate distributed assets, monetize through markets - Capex-light if equipment financed properly - Revenue from stacking: energy arbitrage + ancillary services + demand response