The government plan also talks about ‘Cloud-based – virtual energy storage – services.’ Based on our experience, this type of energy storage should be encouraged. In fact, a more sophisticated demonstration project including distributed renewable energy sources such as Photovoltaics (PVs), a wind turbine, Electric Vehicles (EVs), heat pumps and battery energy storage using cloud-based services – an exemplar pre-commercial micro virtual power plant (µVPP). A Virtual Power Plant (VPP) is a cloud-based central or distributed control centre that takes advantage of information and communication technologies (ICTs) and Internet of things (IoT) devices to aggregate small-scale Distributed Energy Resources (PVs, EVs, wind turbines, energy storage, etc,) into a power plant that behaves like a power plant and this is somehow different from a real power plant and hence is referred to as a virtual power plant (VPP). In a paper published in IEEE Power and Energy Technology Systems Journal in 2016 a micro VPP developed by the University of Birmingham and EON was commissioned and has been and operating since July 2014 in Malmo, Sweden. The major objective of such a system is to maximise the utilisation of renewable energy sources while minimising the CO2 emissions and providing value added system services to support the security and efficiency of power grids.