July 2, 2026
Virtual Power Plant Netherlands: How does Covolt combine more than 900 installations into a single virtual power plant?
Published by
Teun van Sinten
Covolt Netherlands
A Virtual Power Plant (VPP) is not a physical power plant—it is a network of distributed energy assets that are controlled via software as if they were a single large power plant. Covolt manages a Virtual Power Plant comprising more than 900 installations spread across the Netherlands and Belgium, representing over 800 megawatts of managed capacity.
Because, as the Brabants Dagblad recently wrote: a roof full of solar panels is no guarantee of smart energy use. That’s exactly where a VPP comes in—by aggregating your installation with hundreds of others, it gains access to markets that would otherwise remain out of reach for individual users.
What is a Virtual Power Plant?
A VPP is a collection of decentralized installations—batteries, solar farms, charging infrastructure, and controllable consumption—that are integrated via software and managed as a single unit. No new power plant is added. The “power plant” consists of existing assets at tens to hundreds of locations, linked by an energy management system (EMS) that continuously goes through four steps:
Measurement — Each asset provides real-time data on power, consumption, production, and state of charge.
Forecasting — models estimate how the asset will perform in the coming hours and how the market will react.
Optimization — an algorithm determines, for each asset and at each point in time, what the most valuable position is, within technical and contractual limits.
Control — the command is sent via a direct connection — Modbus or API — to the inverter, the battery management system, or the charging platform
Why is a VPP a good option for your system?
A battery used solely for peak shaving generates revenue from avoided grid costs. The same battery, when part of a VPP, can also participate in day-ahead, intraday, and imbalance markets, as well as in the aFRR market—often with the same number of MWh, because these deployments alternate over time rather than being mutually exclusive.
The combination of these value streams is the main reason why an asset in a VPP generates more revenue than an asset operating in a single market.
This stacking only works if the limits are specified in the contract. Covolt sets thresholds for the charging status and a minimum level of coverage for your own consumption—so that your system’s primary function always takes precedence.
How does the Covolt Virtual Power Plant work?
Covolt Horizon EMS — the heart of the VPP: real-time measurement, forecasting, and control of all assets.
aFRR and FCR — Covolt manages a qualified aFRR pool with more than 80 customers. Your asset is included without having to go through a prequalification process.
Imbalance Forecast — Our proprietary forecasting model for the imbalance price continuously determines whether it is smarter to make intraday adjustments or to deliberately target theimbalance .
Flex Trading — asset-backed trading in the day-ahead and intraday markets via ETPA, and imbalance trading, as a single integrated strategy per facility.
Power Control — Physical control of batteries, PV, and charging infrastructure: from peak shaving to adhering to the limits of your grid connection.
Nomination / day-ahead — Covolt develops and adjusts the energy program to reduce imbalance costs.
Asset Monitoring — Availability and performance are monitored; issues are addressed before they affect the pool.
MyHorizon app — transparent, real-time insight into how your asset is performing and what it’s delivering.
VPP vs. aggregator — what's the difference?
The terms “Virtual Power Plant” and “aggregator” are often used interchangeably. The distinction:
An aggregator pooled capital for a single specific market—for example, aFRR only.
A VPP optimizes across multiple markets simultaneously and combines individual asset-level objectives with collective market participation.
Covolt operates as both an aggregator and a VPP operator. Covolt is certified as a Balancing Service Provider (BSP) and a Congestion Service Provider (CSP) — a combination that few Dutch providers can offer.
Virtual Power Plant in the Netherlands — Market Development
The Netherlands is a European leader in the field of VPPs. TenneT encourages VPP participation through aFRR, FCR, and mFRR programs. Grid operators are working through the GOPACS platform on congestion management programs in which VPPs play a central role.
As more solar and wind power enter the grid, prices become more volatile, imbalances increase, and the grid becomes strained in more and more places. A VPP shifts capacity to the times when the grid needs it—and turns flexibility into a tradable commodity.
Connect your system to the Covolt Virtual Power Plant.
Take advantage of economies of scale and generate revenue in markets that would be out of reach individually. In just one call, we’ll calculate the potential returns.
Frequently Asked Questions About VPP and the Energy Market
What is a Virtual Power Plant?
A Virtual Power Plant (VPP) is a network of distributed energy assets—solar panels, batteries, charging stations—that are controlled via a central software platform as if they were a single large power plant. Through a VPP, small installations can collectively participate in energy markets that are not accessible to them individually.
How does a Virtual Power Plant work in the Netherlands?
A VPP operator such as Covolt aggregates the capacity of connected installations and controls them in real time via an EMS platform. The combined capacity is deployed in the day-ahead market, intraday trading, imbalance trading, aFRR, and FCR, as well as for congestion management via GOPACS.
What is the difference between a VPP and an aggregator?
An aggregator pools capacity for a single specific market. A VPP optimizes across multiple markets simultaneously and combines individual asset-level objectives with collective market participation. Covolt operates as both an aggregator and a VPP operator.
How do I connect my system to the Covolt VPP?
Through a consultation, Covolt will assess whether your installation is suitable for VPP participation. Covolt handles the technical connection, certification, and all market administration.
