Global Virtual Power Plant Growth Opportunities

Global Virtual Power Plant Growth Opportunities

Globally, where the closure of coal power plants and the intermittent nature of RES challenge grid operations and stability, VPPs are a promising solution to add flexibility to the grid and solve energy issues of transmission congestion, peak demand, and peak-hour energy prices.
Virtual power plants (VPPs) are an aggregation of decentralized distributed energy resources (DERs), energy storage systems (ESS), and controllable loads, all of which are connected and controlled via a central system of VPP software. The aggregated assets form a single imaginary power plant that can be dispatched during peak demand, eliminating the need for investment in ancillary power generation plants for peak load management. VPP promises significant improvements in grid reliability and resilience and aids in integrating RES into the grid. With other technologies, such as Big Data, the Internet of Things (IoT), and artificial intelligence (AI), VPP can actively manage electricity grids by balancing the demand and supply in the energy market.

Though the concept of VPPs has been present in the global market for almost a decade, most of the studies and projects are still in a pilot phase, so VPP is commercially at an early development stage. This research study aims to analyze the global VPP market, which is still in its early stages, and understands how it will evolve by 2030. The study focuses on the current business models offered by VPP aggregators and utilities, key drivers and restraints for the global VPP market, and the key companies providing VPP solutions.

RESEARCH SCOPE

The study period is from 2020 to 2030, with 2021 as the base year. The forecast period is from 2022 to 2030. Frost & Sullivan’s revenue estimation represents the software & hardware component of the virtual power plant solution and the revenue obtained through services. Market information for the base year is from primary and secondary research data and analyses. Key trends and information on market size, tiers of competition, and other variables are based on discussions with key industry stakeholders in the value chain.

KEY ISSUES ADDRESSED

What are VPPs and how do they work? What are the benefits of VPPs?
What are the key drivers and restraints influencing the global VPP market?
Who are aggregators? What is their role in the European VPP market?
What are the different business models in VPPs? What is the current state of VPP in key regions and countries? How is it projected to grow in the future globally?
Which key stakeholders influence technology development and the adoption of VPP technology? What are the different growth opportunities in this space?