How does a virtual power plant or VPP work?

The virtual power plant, VPP, is a service provided by an energy supplier. This supplier centrally controls the network of household solar panels and solar batteries using Wifi technology and software that analyses, manages, collects and distributes the available power as required. In return for an agreed amount of access to the homeowner's battery and stored power the energy supplier offers incentives and payments, for example a provider may offer an additional payment on top of the regular feed-in tarrif.