Actionable Measures of Demand Side Resources as a Part of Virtual Power Plants: Case studies in Texas

Many regions such as Texas face escalating grid stress due to rapid population growth, industrialization, and extreme weather events. Virtual Power Plants (VPPs), aggregating distributed energy resources (DERs) such as smart thermostats, behind-the-meter photovoltaics (BTM-PV), and flexible loads, offer a scalable solution for enhancing grid flexibility and resilience. This study quantifies the peak demand reduction potential of demand-side resources in the Texas region using Monte Carlo simulations. Results indicate that widespread smart thermostat adoption could potentially reduce peak demand by up to 3.98 GW, while 10% BTM-PV penetration could potentially offset over 2 GW during peak hours. Key challenges include steep net-load ramp rates and distribution system constraints due to reverse power flow. Additionally, demand response (DR) effectiveness is highly sensitive to consumer participation, shaped by enrollment models, incentives, and communication strategies. These findings emphasize both technical and socio-economic prerequisites for effective VPP deployment and offer a possible framework for other regions targeting enhanced grid reliability and decarbonization.