U.S. electricity demand is increasing due to factors like EVs, data centers, and extreme temperatures. With retiring coal and gas plants, the grid relies more on wind and solar power. Virtual power plants (VPPs) use smart devices like home batteries to meet peak demand, benefiting companies like National Grid and Sunrun.

National Grid, a London-based power company, serves millions in the UK and the U.S. Shares have risen 40%, with a 3.7% dividend yield. The company’s VPP program, ConnectedSolutions, has 250 MW of peak shaving capacity. Half-year profits were £2.29 billion, up 12% year over year.

Sunrun, a San Francisco-based company, operates the nation’s largest home-to-grid distributed power plants. Stock has surged over 100% in a year, with $725 million in Q3 revenue, up 35%. Sunrun partners with HA Sustainable Infrastructure Capital to finance 300 MW of capacity.

VPPs are crucial for meeting rising energy demands. Companies like National Grid and Sunrun offer a cost-effective solution to traditional power plants. The U.S. Department of Energy aims to reach 80-100 GW in VPPs by 2030. Despite challenges, the financial growth potential of VPP providers is promising.

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