Industry Background:
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) |
Key Companies Profiled | 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) |
According to AMA, the market for Virtual Power Plant is expected to register a CAGR of 29.68% during the forecast period to 2030. This growth is primarily driven by Shift From Centralized to Distributed Generation and Moderating Costs and Easy Accessibility of Energy Storage.
Globally, a noticeable market trend is evident Growing Share of Renewable Energy in the Power Generation
The Energy & Resources sector in the North America region has been increasing at a sustainable rate, and further growth is expected to be witnessed over the forecast period, owing to the robust investments and expansion in production facilities in the region. Major Manufacturers, such as 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), etc have either set up their manufacturing facilities or are planning to start new provision in the dominated region in the upcoming years. 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.
Key Developments in the Market:
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.
Regulatory Insights:
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.
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
AMA Research follows a focused and realistic research framework that provides the ability to study the crucial market dynamics in several regions across the world. Moreover, an in-depth assessment is mostly conducted by our analysts on geographical regions to provide clients and businesses the opportunity to dominate in niche markets and expand in emerging markets across the globe. This market research study also showcases the spontaneously changing Manufacturers landscape impacting the growth of the market. Furthermore, our market researchers extensively analyze the products and services offered by multiple players competing to increase their market share and presence.
Customization in the Report
AMA Research features not only specific market forecasts but also includes significant value-added commentary on:
- Market Trends
- Technological Trends and Innovations
- Market Maturity Indicators
- Growth Drivers and Constraints in Virtual Power Plant Market
- Analysis about New Entrants in Virtual Power Plant Market & Entry/Exit Barriers
- To Seize Powerful Market Opportunities
- Identify Key Business Segments, Market Proposition & Gap Analysis
- An Unbiased Perspective towards Market Performance & Indicators
Against this Challenging Backdrop, Virtual Power Plant Study Sheds Light on
The Virtual Power Plant Market status quo and key characteristics. To end this, Analysts at AMA organize and took surveys of the Virtual Power Plant industry Manufacturers. The resultant snapshot serves as a basis for understanding why and how the industry can be expected to change.
Where Virtual Power Plant industry is heading and what are the top priorities. Insights are drawn from financial analysis, surveys, and interviews with key executives and industry experts.
How every company in this diverse set of Manufacturers can best navigate the emerging competition landscape and follow a strategy that helps them position to hold the value they currently claim or capture the new addressable opportunity.