Budderfly Launches Multi-Region Virtual Power Plant for Small Businesses

Budderfly, an energy-as-a-service provider, has activated a first-of-its-kind virtual power plant (VPP) for small and mid-sized businesses (SMBs) across four major U.S. grid regions—CAISO, ISO-NE, PJM, and SPP. The program automates demand response using commercial buildings’ HVAC systems, with plans to expand to batteries, solar, and refrigeration—helping stabilize the grid while cutting energy costs for businesses.

How Budderfly’s VPP Works

🔹 Real-Time Grid Response: Adjusts HVAC usage based on electricity demand signals
🔹 No Customer Effort: Budderfly owns & operates the equipment (no upfront costs for businesses)
🔹 Scalable Impact: Currently manages 7,500+ sites, with expansion into Texas & New York planned for late 2025

Key Benefits

✅ For the Grid: Reduces peak demand, avoiding costly fossil-fuel "peaker" plants
✅ For Businesses: Lowers energy bills with zero operational disruption
✅ For the Energy Transition: Unlocks small commercial buildings as a grid resource

Why This Matters for Small Businesses

Most demand response programs exclude SMBs because:
❌ Too complex for owners to manage
❌ High upfront costs for smart thermostats, batteries, or solar
❌ Lack of utility engagement

Budderfly’s model solves these barriers by:
✔ Fully automating participation (no owner input needed)
✔ Covering all equipment costs (energy savings with no CAPEX)
✔ Providing maintenance & upgrades (e.g., replacing failing HVAC systems)

The Bigger Picture: VPPs as a Grid Solution

• California alone could save $750M/year with VPPs (Brattle Group)

• Nationwide, utilities could avoid $35B in costs by 2033 by using VPPs instead of new power plants

• SMBs spend $55B/year on electricity—untapped potential for demand flexibility

What’s Next?

🚀 2025 Expansion: Texas (ERCOT) & New York (NYISO)
🚀 Additional Technologies: Battery storage, solar, and refrigeration controls
🚀 Broader Grid Services: Frequency regulation, capacity markets

Final Takeaway

Budderfly’s VPP proves that small businesses can be a major force in grid decarbonization—without lifting a finger. By automating demand response, this model cuts costs, boosts reliability, and speeds up the clean energy transition.

Could your business benefit from a "set-and-forget" energy program? Let us know in the comments!

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