Throughout our VPP Agility series, we have explored how Virtual Power Plant operators can thrive in changing markets. In previous installments, we covered a lot of ground and looked at multi-market strategies, modular optimization approaches, and evolving grid rules. And now, in the fourth part, we turn to the software itself. Because: Not all VPP software is created equal.
If you’re running - or building - a Virtual Power Plant, chances are you're being pitched a lot of “VPP software.” But the various packages you are offered can mean just about anything: It can range from one vendor wanting to help you establish a basic control system to turn assets on and off, while another offers to set up a full-stack platform that handles trading, optimization, settlement, and everything in between.
So, how do you know what you’re getting - and more importantly, whether it will still serve you six months or two years from now? That’s where many VPP operators encounter problems. They start with a tool that works fine for one use case, but once the asset count grows or new markets open up, they’re stuck.
This part of our VPP Agility series aims to help you avoid that trap. We’ll break down how the needs of VPP operators evolve as their business scales, where most software falls short, and what to look for if you want a platform that’s ready for where the market is heading, not just where it is today.
We’ll also discuss how software needs to expand as a VPP grows, and what functionality is required to support both aggregation and energy trading. We will also consider a new approach to integrating the best of VPP and ETRM capabilities into an end-to-end system.
The VPP vendor market
VPP operators shopping for software quickly find that “VPP platform” can mean very different things depending on the vendor. Some platforms cover only the basics, connecting distributed assets and dispatching them according to simple schedules, while others provide advanced analytics or even integrated trading features. According to the recent VPP Market Study by Commodity Technology Advisory, VPP software offerings generally fall into three tiers: Basic, Advanced, and Full-Scale aggregation solutions* (see chapter software vendor segmentation, p. 19-27).
Each tier corresponds to a different level of operational scope:
You see, the difference in capability between a “basic” and “full-scale” VPP platform can be huge. A basic tool might only deliver a fraction of the functionality that a growing VPP ultimately needs. This is why VPP operators must understand what they are - and are not - getting when they choose a software vendor.
A lower-cost, lightweight platform may suffice for running a small battery aggregation pilot or a few demand response sites. But if the goal is to participate in multiple energy markets or to scale to hundreds of assets, that entry-level system will fall short. In contrast, a full-scale solution can cover all needs in one package; however, these tend to be more complex and expensive, and not all vendors deliver a truly comprehensive offering.
From Pilot to Portfolio
One of the clear lessons from experienced VPP operators is that software needs grow significantly as operations mature and scale. Initially, it’s common to begin with minimal tools. In fact, until recently, many small aggregators managed a few assets using spreadsheets or simple in-house scripts. But success brings expansion: more assets, more markets, and more data.
Suddenly, the old tools struggle to keep up. As the VPP Market Study observes, once you move to multi-market participation with a larger portfolio, you “suddenly need advanced forecasting, sub-hourly dispatch, automated settlement, and robust data management”. In other words, the software must evolve from a basic control platform into a sophisticated operations system.
There are several dimensions to this growth in functionality:
- Scale of assets. Five assets can be dispatched manually; five hundred cannot. Rising device counts flood the platform with telemetry and control signals, so optimization must be algorithmic and fully automated, scheduling thousands of cycles or HVAC tweaks per day in real time.
- Markets & services. A starter VPP may earn solely from frequency response. As prices compress, it layers on day‑ahead hedging, intraday trading, capacity or DSO schemes - each with its bid windows and rules. Software must constantly determine where each kilowatt or kilowatthour is most valuable, and then execute without human intervention.
- Data & analytics. Growth multiplies data: intraday price curves, probabilistic weather sets, asset health. Advanced platforms ingest and align these streams, run ML forecasts, and continuously re-optimize; older aggregator stacks often struggle here.
- Operational integration. Large VPPs evolve into trading desks, requiring scheduling, position and risk tracking, and automated settlement. The control platform, therefore, must either embed ETRM-grade functions or interface cleanly with one, so operators can hedge, reconcile, and report as demand scales.
The trajectory often follows this pattern: start with an aggregator for one task, then add forecasting, followed by a scheduling module for another market, and perhaps add a trading interface, and so on. If the initial platform wasn’t designed to expand, this can turn into a patchwork of tools and workarounds. That is why forward-looking operators should plan for the long term when selecting software. A cheap, limited solution might serve you today, but will it scale with your roadmap for tomorrow’s markets?
Combining VPP and Energy Trading Capabilities
As VPPs mature, they require software that encompasses both aggregation, real-time dispatch, device control, optimization, and energy trading, including scheduling, bidding, settlements, and risk management. This dual functionality reflects the hybrid nature of large operators, which are part asset orchestrator and part market participant. Initially, these functions lived in separate systems, but the trend is shifting toward convergence.
Some vendors offer integrated suites, while others rely on application programming interfaces (APIs) to link specialized tools. The ComTech study notes that many aggregator platforms still fall short of full trading capabilities, while some full-scale solutions risk rigidity. The key here is modularity: a system built from interchangeable components that connect via open interfaces. That allows operators to pair their preferred trading stack with an aggregator’s control layer, avoiding vendor lock-in and remaining flexible enough to adapt to new market rules, algorithms, or optimization strategies as they scale.
Flexibility, Scale, and a New Breed of VPP Platforms
The evolution of VPP software is reaching an inflection point. Operators are demanding solutions that can start small but scale up to meet their needs, integrating everything from real-time device control to trade settlement as required. They want the specialization of VPP platforms and the breadth of traditional trading systems, without having to stitch together a dozen products themselves. And crucially, they want to avoid being locked into a single vendor’s siloed ecosystem as their business expands.
This is the vision behind new platforms that combine VPP and ETRM capabilities into one modular, end-to-end solution. For example, our own Energy Market of Things* (EMoT) ecosystem approach sets out to deliver a full-scale VPP software solution that goes beyond the current market definition of “aggregator software”. By combining the functions of a VPP platform and an energy trading and risk management system, it aims to provide the best of both worlds in a single, flexible architecture. In practice, this means that a VPP operator can manage asset aggregation, optimization, market bidding, and post-trade processes all within a single, coordinated system.
Features such as day-ahead scheduling, intraday trading, portfolio risk monitoring, and automated settlement are designed to integrate seamlessly alongside the core aggregation modules. This modular SaaS model enables operators to begin with the necessary components and add more as their VPP business expands or enters new markets. Because it’s software-as-a-service, new features (for example, a new ancillary service integration or an update for a changed regulation) can be rolled out continuously, helping clients stay current without major upgrades on their side.
Most importantly: Modularity means choice and adaptability, as you can integrate best-in-class external tools (forecasting, AI optimizers, etc.), or swap out modules later without rebuilding your entire system. SaaS means accessibility and scalability: even smaller players can access top-tier functionality on a subscription, and systems can scale on cloud infrastructure as asset counts grow. Together, these characteristics help avoid the rigidity that doomed earlier one-size-fits-all solutions. The result is software that adapts to the operator’s roadmap, not the other way around.
The Dawning of The Age of Agility
For VPP operators, agility is now the decisive quality. A clever dispatch algorithm or a profitable pilot is only the starting point; lasting success depends on adapting to new markets, new revenue streams, and ever‑larger portfolios. That means choosing software that is both comprehensive and flexible from day one.
The vendors that win will be the ones that enable you to evolve quickly, from adding fresh algorithms to entering new countries, without requiring a significant rebuild. With a future-proof platform in place, you can focus on the next opportunity rather than the following workaround.
Up next: in the final part of our series, we’ll scan the European map for the markets where that agility pays off, and show how an adaptable VPP setup can turn fresh regulations and price swings into new profit streams.
* In the VPP Market Study, Navitasoft’s EMoT was categorized as an “advanced aggregation solution”. Since the study was published, further development and integration with our ETRM software have now positioned our platform in the category of “full-scale solutions”.
