VPP & DER glossary

An organization that coordinates multiple customer resources for a program or market.

An aggregator may manage enrollment, device controls, metering and settlement, directly or with partners. Wholesale eligibility depends on the operator’s effective rules and qualification; the VPP label alone does not establish market access.

Services that help operate the grid, including regulation and operating reserves.

Products and technical requirements vary by market. Batteries and controllable loads may qualify for particular services, but their response, telemetry and certification must meet that service’s rules.

An approved estimate of consumption without a demand-response event.

A program compares measured use against its specified counterfactual or another approved performance method. Similar-day selection, adjustments and exclusions can affect credited reductions; the governing rules determine the method.

Equipment located on the customer side of the utility billing meter.

Customer-side solar, batteries and loads may support utility or market programs. Behind-the-meter placement does not waive interconnection, export permission, metering, safety or program requirements.

A program model that enrolls eligible customer-owned equipment.

Each utility or provider defines its supported devices, connectivity, enrollment and control terms. A battery BYOD offer does not automatically accept thermostats, heat pumps or EVs under the same agreement.

A market mechanism that compensates qualified resources for availability in a future delivery period.

Capacity accreditation, commitment periods, testing and performance consequences depend on the operator and tariff. Not every grid region uses a centralized capacity auction, and a capacity payment is distinct from payment for delivered energy.

A change in electricity use in response to a program, dispatch signal or price.

Demand response can reduce or shift consumption, with compensation defined by the applicable utility or market program. It can be part of a VPP; it is not inherently separate from one.

Power a resource can make available under specified operating conditions.

Available kW or MW depends on duration, state of charge, customer reserve, opt-outs, site limits and the contracted service. Nameplate, enrolled capacity and a measured event result are different quantities.

Generation, storage or controllable demand connected to a distribution network or customer site.

Examples include solar, batteries, EV charging and flexible building loads. The relevant program defines eligible equipment and how its contribution is measured.

Software that monitors and coordinates distributed resources and their grid constraints.

A DERMS may support utility distribution operations, resource controls or an aggregation platform. DERMS and VPP functions can overlap; a software label does not prove particular device integrations, market qualification or delivered capacity.

A FERC rule requiring DER aggregation participation models in covered regional wholesale markets.

Order No. 2222 requires covered RTOs/ISOs to develop participation rules and set an aggregation minimum no higher than 100 kW. That is not a minimum size for every device. Implementation dates and available services differ by operator; ERCOT is outside this rule’s scope.

Controlled adjustments that help balance electricity supply and demand and maintain frequency.

Qualified resources follow the operator’s regulation signals under product-specific performance and telemetry rules. No single sub-second response time or data interval applies to every VPP or market.

Resources connected on the utility side of a customer billing meter.

Utility-side storage or generation may participate in utility operations or wholesale markets under the applicable interconnection and participation agreements. Meter location alone does not establish a market product or qualification.

Payment for eligible capacity, energy, demand response or other grid services.

Payments depend on the program, measured performance, event frequency, caps and provider revenue share. They are not automatically net profit: charging, equipment, fees and taxes can reduce the customer benefit. No universal annual earnings range applies.

Equipment that transfers heat for heating or cooling and may provide controllable electrical demand.

Compatible controls can shift heating or cooling within comfort and equipment limits. Program eligibility, weather, building conditions and customer consent determine the flexible contribution; installed heating capacity is not dispatchable VPP MW.

The technical and contractual process for connecting equipment to the electric system.

Requirements depend on equipment, location, export behavior and utility rules. Customer-side batteries can still need interconnection review. VPP enrollment does not itself grant permission to export or accelerate an interconnection queue.

An independent grid and wholesale-market operator; the related RTO term denotes a regional transmission organization.

CAISO, PJM, NYISO, ISO-NE, MISO and SPP have operator-specific products and participation models. ERCOT also operates a regional market under its Texas framework. Not every operator has a centralized capacity market.

Control of when and how quickly an EV charges, without requiring grid export.

Managed charging can shift charging around vehicle needs, utility signals, prices or site limits. The customer agreement defines overrides and participation; unidirectional charging does not become V2G merely because software schedules it.

The filed rates and service rules governing a utility or market relationship.

Relevant provisions can include time-of-use pricing, demand response, interconnection and export compensation. A provider’s marketing offer is not a substitute for the applicable approved tariff and customer agreement.

Measurements communicated from resources to a control or monitoring system.

Operational telemetry and settlement meter data serve different purposes. Required intervals, accuracy, communication and submission deadlines depend on the market product or utility program; there is no universal VPP telemetry interval.

Bidirectional EV charging that can export electricity to the grid.

V2G needs a compatible vehicle and charger, an approved electrical installation and utility permission where required. Managed charging and vehicle-to-home backup are different functions; support for one does not establish the others.

A coordinated portfolio of distributed resources providing grid services.

A VPP can coordinate demand reduction, load shifting, storage or power export. Utility programs and wholesale markets have different qualification rules; not every participant exports electricity.