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January 2025

VPP Readiness Index

VPP Readiness Index

Integrate to Zero (I2Z) and Blunomy designed a Virtual Power Plant (VPP) Readiness Index to assess a country’s readiness for large-scale VPP deployment based on its technical, regulatory and commercial characteristics.

VPPs are aggregations of Consumer Energy Resources (CERs), orchestrated by software, that can provide utility -scale and utility-grade grid services to Grid System Operators (GSOs) or Distribution System Operators (DSOs). They are an emerging capital and cost-efficient alternative to the traditional supply-side measures employed to manage the increasing penetration of variable renewable energy-based electricity generation in the grid.

In this report, the VPP Readiness Index was applied to 12 countries across five continents at varying economic and electricity market maturity levels: Kenya, South Africa, Nigeria, India, Indonesia, Malaysia, France, the United Kingdom, Australia, Brazil, Chile and Colombia. It presents a comparative analysis of the results, and a detailed assessment for each country.

This report also details how VPPs work, their value proposition, and the method and criteria used to assess each country.