Virtual Power Plant Flexibility Value

Estimate the value a virtual power plant portfolio can unlock by combining dispatchable capacity, expected event cadence, performance factors, and any penalty structure.

Sum of controllable load reductions and behind-the-meter generation you can call during an event.
Number of market or utility events you expect to respond to each year.
Typical continuous duration of each dispatch window in hours.
Blended capacity + energy payment per megawatt-hour delivered during events.
Optional. Defaults to 95%. Captures telemetry uptime and enrolment attrition.
Optional. Defaults to 100%. Adjusts for real response relative to committed capacity.
Optional. Defaults to $0. Applied to under-delivered megawatt-hours relative to the available pool.

For market modeling only; confirm tariff rules, telemetry requirements, and contractual settlement terms before financial commitments.

Examples

  • 1,200 kW aggregated load, 30 events, 2.5 hours, $185/MWh rate, 95% availability, 92% performance, $50/MWh penalty ⇒ Delivered 78.66 MWh, gross $14,552.10, penalties $342.00, net $14,210.10, $11.84 per kW-year.
  • 800 kW portfolio, 18 events of 4 hours, $150/MWh, default availability and performance, no penalty ⇒ Delivered 54.72 MWh, gross and net $8,208.00, $10.26 per kW-year.

FAQ

How should I source the availability factor?

Use historical telemetry uptime across your device fleet and subtract known opt-out windows. Program operators often audit these figures, so align the assumption with contractual reporting.

Can I include capacity payments separately?

Yes. If your market offers a fixed capacity payment, add it to the net annual value outside this calculator or convert it into an equivalent $/MWh adder before entering the compensation rate.

What does the penalty rate represent?

Some markets claw back payments when dispatch falls short. Enter the penalty rate in $/MWh of shortfall to reflect performance risk; leave blank to assume no penalty exposure.

Additional Information

  • Result unit: USD per year with supporting MWh and per-kW metrics.
  • Availability factor defaults to 95% when blank to reflect telemetry outages and opt-outs.
  • Penalty rate applies only to the gap between available and delivered megawatt-hours.

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