Sunnova to expand virtual power plants to manage solar and storage grid connections in the US

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Sunnova operates the LUMA Battery Emergency Demand Response Program in Puerto Rico. Image: Sunnova

US residential solar firm Sunnova has expanded its solar-plus-storage virtual power plants (VPPs) to better manage the grid in six US states, plus the territory of Puerto Rico.

The company already operates the LUMA Battery Emergency Demand Response Program in Puerto Rico, where its VPP helps the firm manage its 10MWh of storage capacity to avoid power outages during times of peak electricity demand.

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Sunnova’s work has already benefitted from US Department of Energy funding to expand its solar and storage projects in the territory, and as of March this year Sunnova estimates that its VPP has helped Puerto Rico avoid five grid outages.

While the company did not specify how much money it would invest into the new VPPs, it is looking to bring the practise to a number of states on the US mainland, and noted that it would begin to work in the states of California, Texas, New York, Massachusetts, Rhode Island and Connecticut.

The former two states are particularly notable, considering their vast solar sectors. The US Solar Energy Industry Association (SEIA) estimated that California and Texas have a combined operating capacity of 69.6GW, and that they will add another 60.7GW in the next five years.

“Our customer base is rapidly expanding, and we’re at a pivotal moment in enrolling customers into VPPs,” said Michael Grasso, Sunnova’s chief revenue officer. “This comes at a time when energy storage is increasingly becoming mainstream, and the delivery of grid services through our VPP is becoming an everyday activity.”

According to Sunnova’s latest results, the company added 34,000 new customers in the fourth quarter of 2023, bringing its total customer case to 419,200, and marking the fifth consecutive quarter that Sunnova has added at least 30,000 new customers.

However, the company’s financial results have struggled in the past year, posting losses of US$56.5 million and US$234.8 million in the final two quarters of 2023, respectively, which the company attributed to factors including “an increase in interest expense [and] higher general and administrative expense.”

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