Virtual Power Plant Market Overview:
Global Virtual Power Plant Market was valued at $762 million in 2016, and is expected to reach at $4,587 million by 2023, registering a CAGR of 25.9% from 2017 to 2023. Virtual power plants (VPP) are clusters of distributed generator units, manageable loads, and energy storages systems, grouped to operate as an integrated power plant. The distributed nature of the energy resources results in lower capital cost, thus less financial and political risk.
Rise in demand for renewable energy in power generation sector, changes in dynamic of power grids from centralized to distributed, and moderating costs and easy accessibility of energy storage drive the growth of the virtual power plant market. However, health concerns over high frequency human exposure of electromagnetic and radio waves hamper the potential of the market for different end users. Conversely, emerging shift towards electric vehicles and promotion of intelligent office buildings and smart grids, is expected to create opportunities in the market. Key market players have adopted merger as their key strategy to widen their brand portfolios and expand their market reach.
The global virtual power plant market is segmented based on technology, end user, and geography. Based on technology, it is categorized into distribution generation, demand response, and mixed asset. Based on end user, it is divided into commercial, industrial, and residential. By geography, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pockets
In 2016, the demand response segment, accounted for around five-eighths of the global market share. This segment is highly lucrative for investment due to long-term benefits for end users and improving the energy efficiency of the grid. Thus, demand response is anticipated to show high growth rate along with significant return on investment for the stakeholders, owing to its notable revenue contribution and high growth rate.
Global Virtual Power Plant Market Analysis
Asia-Pacific possesses maximum potential for growth in the global virtual power plant market, on account of the growth in energy demand from emerging economies. The U.S. is expected to lead the market and witness high demand for virtual power plant, owing to increase in emphasis on utilization of renewable energy.
Australia Virtual Power Plant Market, 2016-2023 ($Million)
A lot of companies have adopted product development, expansion, and merger strategies to sustain the intense market competition. The key players profiled in the report include ABB Ltd., AGL Energy, AutoGrid Systems, Inc., Comverge, Inc., Enbala Power Networks, EnerNOC, Inc., General Electric Company, Siemens AG, Schneider Electric SE, Limejump Ltd., and others.
Other market players (not profiled in report) in the value chain include, Advanced Microgrid Solutions, Bosch Software Innovations GmbH, Green Charge Networks LLC, Lichtblick SE, Power Analytics Corp., Spirae LLC, Sonnen GmbH, and Viridity Energy Solutions, Inc.
Key Benefits :
- This report provides an extensive analysis of the current trends, emerging estimations, and dynamics in the global virtual power plant market.
- In-depth analysis of the market is conducted, and estimations for key segments from 2014 to 2022 are provided.
- Comprehensive analysis of the factors that drive and restrain the market growth is provided.
- Industry analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- Key market players are profiled and their strategies are analyzed thoroughly to provide a competitive outlook of the industry trends.
Virtual Power Plant Market Key Segments:
- Distribution Generation
- Demand Response
- Mixed Asset
By End User
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific