Report Code: A03807 | Pages: 182 | May 2020 | 22532 Views | ||
Author(s) : Eswara P | Tables: 58 | Charts: 34 |
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Request Now !The global virtual power plant market size was valued at $1.3 billion in 2019, and is projected to reach $5.9 billion by 2027, growing at a CAGR of 21.3% from 2020 to 2027. Virtual power plant, an aggregated decentralized power plant, consisting of decentralized power systems with the purpose to integrate different distributed energy sources such as solar PV cells, wind turbines, and hydroelectric plants. Additionally, virtual power plant offers efficient power generation even at peak load periods with a scope to trade or sell power in trading market. Virtual power plant is medium scale power generating unit integrating different renewable energy sources for solar, wind and other flexible power consumers and storage systems. A virtual power plant consists of different mixed assets that are connected via central control system processing wide range of information, such as current prices at the power exchange, price and weather forecasts, and grid information of the system operators.
Growing penetration for renewable energy in power generation sector coupled with changes in dynamics of power grids from centralized to distributed is expected to drive the virtual power plant market growth. Further reduction in energy cost and easy accessibility of energy storage will boost the market demand. For instance, Tesla reported in their recent virtual power plant project 70% decrease in grid consumption, while bills have been reduced by up to 30%. Additionally, VPP is more efficient and flexible to deliver the peak load electricity in a short notice period compared to conventional power plant set up that will further drive the market growth. Flexibility in trading with virtual power plant due to price volatility attracted lot of new participants. Customers can sell excess energy at trade market as well as buy energy at lower price. Such features of virtual power plant is expected to further fuel the demand. However, high-frequency of electromagnetic and radio waves leads to health concerns in infants and old people, which may hamper this growth. Nonetheless, stringent government regulations regarding eco-friendly power generation will further enhance the market for renewable energy, thus fueling the demand for virtual power plant market.
The market is segmented into technology, end user, and region. Based on technology, the market is classified into distribution generation, demand response, and mixed asset. Based on end user, the market is divided into commercial, industrial, and residential. Based on region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Europe accounted for highest virtual power plant market share owing to the presence of large number of industry players and new government initiatives across different European countries on 100% green energy. Asia-Pacific possesses highest growth in the global virtual power plant market. This can be accounted to the rising energy demand in countries, such as China and India with rapid industrialization. For instance, by country of activity, China accounts for 36 percent of the steel industry’s annual contribution to global GDP. U.S. is expected to lead the market in North America and witness high demand for virtual power plants, owing to the increase in demand for renewable energy.
Major players have adopted product launch, business expansion to sustain the intense market competition. The key players profiled in the report include ABB Ltd., AGL Energy, AutoGrid Systems, Inc., Enbala Power Networks, Enel X Inc., General Electric Company, Siemens AG, Schneider Electric SE, Limejump Ltd., and others.
Europe accounted for highest market share owing to the presence of large number of industry players and new government initiatives across different European countries on 100% green energy. Asia-Pacific possesses highest growth in the global virtual power plant market. This can be accounted to the rising energy demand in countries, such as China and India with rapid industrialization. For instance, by country of activity, China accounts for 36 percent of the steel industry’s annual contribution to global GDP. U.S. is expected to lead the market in North America and witness high demand for virtual power plants, owing to the increase in demand for renewable energy.
Demand response accounted for highest revenue share in the virtual power plant market. This can be attributed to grid modernization with emerging virtual power plant industry that will lead to increasing demand in demand response. Mixed asset is expected to witness highest market growth owing to greater application of smart devices to control customer-sited loads.
Industrial segment accounted for highest revenue share. Growing application of small and medium sized VPP in industrial areas will drive the market growth. High reliability and energy efficiency during peak load time periods made VPP suitable for industrial application. Residential segment is expected witness highest growth in forecast timeframe.
Key Benefits For Stakeholders
The global Virtual Power Plant market analysis covers in-depth information of major industry participants.
Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
Major countries have been mapped according to their individual revenue contribution to the regional market.
The report provides an in-depth analysis of the global Virtual Power Plant market forecast for the period 2020–2027.
The report outlines the current virtual power plant market trends and future estimations of the market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
The key drivers, restraints, and virtual power plant market opportunity and their detailed impact analysis is elucidated in the study.
Virtual Power Plant Market Report Highlights
Aspects | Details |
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By Technology |
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By End User |
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By Region |
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Key Market Players | ABB LTD., General Electric Company, SIEMENS AG, Enel x, INC., SUNVERGE ENERGY INC., AGL ENERGY LIMITED, Limejump Energy Ltd., AUTOGRID SYSTEMS, INC., SCHNEIDER ELECTRIC SE, ENBALA POWER NETWORKS |
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Virtual power plant (VPP) as a power grid management system links several types of distributed generation as one power plant, and operates the one power plant on demand response and ancillary service in power grid. VPP is a technology to efficiently manage different resources related to generation, storage, and demand by using software. It strengthens the flexibility of power grid operation based on Information Communication Technology (ICT), totally managing both supply and demand side resources.
The use of renewable energy sources and energy storage systems is on an increase while fostering new policies for energy industries. Changes in power systems from centralized power systems to distributed power systems include sustainable and renewable energy sources, emergency generators, and energy conversion & savings. However, distributed energy resources can cause instability and unreliability of power grids, and there is a lack of business models permitting general consumers to participate in the wholesale and retail markets for profit.
A. Market value of virtual power plant market was $1.3 billion in 2019.
A. Demand response market holds the maximum share of the virtual power plant market.
A. To get latest version of virtual power plant market report.
A. Growth of virtual power plant market in 2027 will be 26.62%.
A. Virtual power plant market is in expansion phase. Rising number of new virtual power plant projects, collaboration between plant manufacturers and technology providers, and new product launches are the key trends in the virtual power plant market.
A. On the basis of top growing big corporation we select top 10 players.
A. Business expansion, new product launch and partnerships are the key growth strategies of virtual power plant industry players.
A. Mixed asset segment is the most influencing segment in the virtual power plant market report.
A. Asia-pacific will provide more business opportunities for virtual power plant market in coming years.
A. Commercial areas such as restaurants, hotels, cafeteria, different medium and small scale industries, and residential areas are potential customers of virtual power plant industry.
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