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Our Virtual Power Plant
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What is a virtual power plant?
At APS, the virtual power plant is a partnership with customers, creating a network of thousands of customer-owned devices, like smart thermostats and home battery storage. Through this collaboration, these devices act as an energy resource to decrease demand during peak times, helping to balance supply and demand. The energy produced from this connection of smart technology reduces the need to start up an additional power plant. This is not only a cost-effective resource for our customers, but also protects the environment and enhances overall power grid reliability.
Currently, our virtual power plant is nearing 200 MW, which is the equivalent to powering approximately 31,200 homes in Arizona. It primarily consists of smart thermostats and battery storage, with plans to expand over the next decade.
The customers, in our industry leading APS Cool Rewards program, are the heart of our virtual power plant. This opt-in program provides bill credits to customers who voluntarily conserve energy during the times of day when demand is highest.
- Customers receive a $50 bill credit per eligible smart thermostat enrolled and a $35 bill credit at the end of the first season. Every year after that, they'll receive a $35 participation bill credit.
- On select days, enrolled customers will be notified, and their thermostats will be adjusted a few degrees for a designated period.
- With over 90,000 thermostats currently enrolled in APS Cool Rewards, we have reduced energy demand by 160 MW. The impact of that small change is similar to what a traditional power plant produces and enough energy to serve about 25,000 Arizona homes.
- Customers can opt out of a conservation event at any time by manually adjusting their thermostat.
Powering the virtual power plant
Additional virtual power plant programs, combined with APS Cool Rewards, helped reduce energy demand on the power grid by 190 MW in 2024 and saved customers money. Here’s how customers contribute to the APS virtual power plant community:
- Energy Saving Days – On certain days, select customers who are not enrolled in Cool Rewards are encouraged to voluntarily conserve energy at home. They receive a report showing how much energy they saved by making simple changes.
- Residential Battery Pilot – In this pilot program, participating customers’ home battery devices dispatch energy back to the power grid on certain days.
- Peak Solutions – Participating business customers agree to reduce energy use during times of high demand.
- Innovation – Our virtual power plant doesn’t stop here. We will continue to design new innovative programs that meet our customers’ needs and support the power grid.
What others are saying
Peak Performance: APS's Virtual Power Plant Saves Big During Brutal Heatwave
The utility’s coordinated demand response programs are setting new standards for energy management and customer engagement.
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