Siemens Energy and US energy service provider Viridity Energy will cooperate to build virtual power plants, in a bid to convert existing power supply networks into smart grids.

The two companies have finalised a technology partnership to offer power supply companies and network operators the necessary technology for implementing virtual power plants.

Within the framework of the agreement, Siemens will increase the presence of its decentralised energy management system DEMS in the US market, the company said.

In a virtual power plant, various distributed power generation systems such as small hydro power plants, wind turbines, photovoltaic systems and biogas plants are combined into a network and controlled as a single power plant.

The core element to the technology is a decentralised energy management system such as DEMS, operated by a service provider, such as Viridity.