Artificial intelligence (AI), the Internet of Things (IoT), and distributed energy resources (DERs) are transforming Africa’s energy sector. Virtual Power Plants (VPPs) are being piloted in South Africa and Zimbabwe, aggregating decentralised generation, storage, and flexible demand into controllable networks that provide real-time balancing, energy trading, and ancillary services without the need for costly new infrastructure.
In South Africa, the Evolve Battery & Grid Solutions in Cape Town aggregates hundreds of rooftop solar panels and batteries, optimising energy dispatch. Utility-scale VPPs combine wind, solar, and battery storage to enhance grid flexibility, while the Umoyilanga VPP integrates generation from sites 900 km apart, improving reliability. Smart water heater trials in the Western Cape demonstrated significant reductions in household blackout hours.
In Zimbabwe, NeedEnergy (Techstars'23) is developing the country’s first VPP, using an AI-driven energy exchange to aggregate solar resources and enable peer-to-peer trading, addressing load-shedding challenges.
Key adopters include hospitals, universities, real estate portfolios, and public institutions. VPPs reduce strain on transmission and distribution networks, defer expensive grid reinforcements, and facilitate cost-effective integration of renewables.
Challenges remain, including regulatory gaps, cybersecurity, and nascent flexibility markets. Successfully addressing these will allow Africa to scale AI-enabled VPPs, building decentralised, resilient, and low-carbon energy systems that improve reliability, reduce costs, and advance climate goals.
