June 18, 2025
Summer has arrived, and our virtual power plants (VPPs) are ready to play a critical role in grid reliability. This is typically the busiest season for grid events, with elevated energy demand and higher prices creating the greatest opportunities for VPPs to earn revenue.
However, strong VPP performance doesn’t happen by accident. It requires close attention to how energy assets respond during grid events, and a clear understanding of how different variables impact that response. In order to maximize earnings and impact, Leap works hand-in-hand with our technology partners to analyze asset data and recommend strategies to improve performance.
(Need a refresher on VPP performance? Check out part 1 and part 2 of our primer blog series.)
Let’s walk through the four pillars that Leap has found to most significantly impact VPP performance, and how Leap helps partners turn pillar insights into action that drives revenue growth.
1. Data Completeness: Don’t Let Missing Data Cost You
You can’t get paid for performance you can’t prove. That’s why complete and accurate interval data is foundational. Data gaps — whether due to faulty meters, system communication issues, or integration disruptions — can directly reduce or eliminate revenue for affected assets.
Leap’s platform constantly monitors data flow and flags missing intervals, working in the background on behalf of our partners to re-request data and interpolate where allowed. For programs using device data provided by partners, we also alert partners to revenue risk from missing data and help them escalate and resolve issues early. The result? Better visibility, faster troubleshooting, and stronger long-term performance.
2. Event Load: Did the Asset Respond?
This lever is straightforward: did the meter actually reduce load when dispatched? Leap evaluates response data to assess:
Whether a drop occurred during the event window
How closely it matched the nominated amount
When the drop occurred (early, on-time, or late)
We also track participation patterns across multiple events. Assets that consistently fail to respond offer clear opportunities for corrective action, whether through customer outreach, technical troubleshooting, or reevaluating eligibility.
For one Leap partner, identifying just ten non-responsive assets saved over $6,000 in missed revenue in a single event.
3. Nominations: Set Smart, Realistic Expectations for Your Assets
Nominations are forecasts of how much an asset can reduce its load, typically set per meter in kilowatts (kW). If the nomination is too high and isn’t met during grid events, it can hurt performance and trigger financial penalties. Conversely, nominations that are set too conservatively could lead to missed revenue opportunities.
Leap helps partners to right-size nominations by analyzing historical load patterns, customer behavior, and seasonal variability. Whether it's tailoring site-specific strategies for commercial HVAC systems or applying bulk estimates to residential EV chargers, the goal is the same: set nominations that each asset can reliably achieve, with minimal buffer.
Bonus payments for hitting or exceeding nominations mean that accuracy is doubly important — both for grid value and your bottom line.
4. Event Baseline: A Moving Target That Matters
Baselines represent what load would have been if a grid event had not occurred. Performance is measured against this value. Markets and programs use different methods for generating the relevant baseline, but the most common use formulas like “X of Y” to generate a baseline; for example, averaging the five highest loads from the past ten similar days.
Baseline methodologies aren’t always a perfect fit for distributed energy resources. Assets with irregular usage patterns — like a site that was idle all month but ramped up just before an event — may have skewed baselines that undercount performance. Likewise, unusually mild weather during baseline days can suppress summer expectations for HVAC assets.
Leap helps partners identify and mitigate these issues by:
Selecting best-fit test days
Applying best-fit baseline methodologies per meter when programs allow multiple options
Flagging meters at risk of baseline distortion
Guiding nomination adjustments to maintain performance accuracy
Don’t Leave Money on the Table
While the core levers of VPP performance are simple, the real-world interplay between them is complex. Leap helps partners pull the right levers to make every megawatt count. Get in touch to learn how Leap can help maximize your VPP earnings.
