About Virtual Power Plant
Due to upsurging demand for renewable resources will help to drive global virtual power plant market in the forecasted period. Virtual power plants (VPP) is referred to as a cloud-based distributed power plant. VPP aggregates the capabilities of heterogeneous distributed energy resources (DER) for improving power generation, and selling power or trading on the electricity. It does not physically exist. Virtual power plants (VPP) are clusters of distributed generator units, controllable loads, and energy storages systems, gathered to work as an integrated power plant. Additionally, it is a network of medium-scale, decentralized power generating units same as Joint Heat and Power (CHP) units, solar plants and wind farms as well as flexible power consumers and batteries.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
High Growth Market | Asia- Pacific |
Unit | Value (USD Million) |
CAGR | 29.68% |
The companies are exploring the market by adopting mergers & acquisitions, expansions, investments, new service launches and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that Global Manufacturers will contribute the maximum growth to Global Virtual Power Plant market throughout the forecasted period. Established and emerging Manufacturers should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
ABB Ltd. (Switzerland), AGL Energy (Australia), AutoGrid Systems, Inc. (United States), Comverge, Inc. (United States), Enbala Power Networks (Canada), General Electric Company (United States), Siemens AG (Germany), Schneider Electric SE (France), Limejump Ltd. (United Kingdom), EnerNOC, Inc. (United States), Advanced Microgrid Solutions (United States) and Bosch Software Innovations GmbH (Germany) are some of the key players that are part of study coverage. Additionally, the Manufacturers which are also part of the research coverage are Green Charge Networks LLC (United States), Power Analytics Corp. (United States) and Spirae LLC (United States).
Segmentation Overview
AMA Research has segmented the market of Global Virtual Power Plant market by Type (Centralized Controlled VPP and Decentralized Controlled VPP), Application (Defense, Government and Commercial) and Region.
On the basis of geography, the market of Virtual Power Plant has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2023. Europe, on the other hand, stood as the second largest market due to the presence of key companies in the region and high technological advancement. If we see Market by Technology, the sub-segment i.e. Distribution Generation will boost the Virtual Power Plant market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Growing Share of Renewable Energy in the Power Generation and Fast Growing Power Sector in Developing Countries
Market Growth Drivers:
Shift From Centralized to Distributed Generation and Moderating Costs and Easy Accessibility of Energy Storage
Challenges:
Cybersecurity Concerns Related With the Energy Sector
Restraints:
Rising Safety Concern Regarding Electromagnetic Frequency As Well As Radio Waves
Opportunities:
Emerging Shift towards Electrical Vehicles and Enlargement of Intelligent Office Buildings and Smart Grids
Market Leaders and their expansionary development strategies
In January 2023, RMI announced the formation of the Virtual Power Plant Partnership (VP3). In recognition of the critical work needed to tackle scaling the market for virtual power plants, initial funding of the VP3 effort was made possible by General Motors and Google Nest.VP3 includes founding members Ford, General Motors, Google Nest, OhmConnect, Olivine, SPAN, SunPower, Sunrun, SwitchDin, and Virtual Peaker.
IN April 2023, SunPower and OhmConnect launched a new virtual power plant (VPP) offering for SunPower customers across California. Now, homeowners in select locations with solar and SunVault® battery storage can connect with OhmConnect directly through the mySunPower app to earn rewards for managing their electricity use during periods of peak demand.
On 3rd Feb 2021, Hitachi ABB Power Grids has been selected to deploy its innovative energy storage solution to support the development of Singapore’s first Virtual Power Plant (VPP) project.
Analyst View
Slower demand growth resulting from falling economic activity prompted by COVID-19 will probably keep oil prices down. However, volatility should be expected. Low oil prices will help oil-importing countries, including those where the price of natural gas is indexed to oil. Natural gas prices were already at record lows before COVID-19 due to the economic slowdown in China and record shale gas production in the United States.
Key Target Audience
Distributed Energy Generation Solution Providers, Micro Grid Developers, Raw Material Suppliers, Energy Regulatory Agencies, Smart Grid Hardware, Software & Technology Vendors And Service Providers, Traders, Distributors, And Suppliers, Industry Associations And Experts, Industry Associations, Government And Private Research Organization, Government Regulatory Bodies and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.