Global Virtual Power Plant (VPP) Market Outlook to 2028

Global Virtual Power Plant (VPP) Market Outlook to 2028

Updated on 26th May 2023 | Market Research Reports | Q2 2023 | Report ID: BR0330

About the Report

Drivers:

  • Growth of Smart Energy solutions.
  • Increasing growth of energy storage system.
  • Growth in renewable energy policies.
  • Increasing renewables penetration in microgrids due to cost reductions and technological advancements.
  • Digitalisation, automation, and real-time control of the power system.
  • Energy flexibility/demand response is becoming increasingly critical with the growth of renewables.
  • The power sector regulation allows for more active participation of distributed generation and demand in electricity markets.

 

Definition and Benefits:

A Virtual Power Plant (VPP) is a shared cloud-based network with a decentralized multi-asset ecosystem consisting of a mix of energy generators, energy storage, and energy assets managed by a single control system with bidirectional communications between its components to achieve more efficient operation. The goal of VPP is to connect distributed energy resources (DER) to be monitored, forecasted, optimized, and traded.

 

vpp

 

Benefits:                                                                                                

  • VPP monitors the network of DERs and makes moderate modifications to Flexible Energy Assets, such as turning them on or off in response to changing energy demands, resulting in a more stable and efficient system.
  • Allows smaller Flexible Energy Assets to be grouped so that they can buy energy from a single developer, or numerous developers, as a single larger business while still taking full advantage of a high-volume purchase.
  • Since the consumption points are very close to those where energy is generated, there is a decrease in the energy loss during transportation.
  • VPP enables local grid operators to use energy flexibility to assure a more stable electricity supply, improved energy efficiency, and more grid capacity for renewables.
  • They allow asset owners to increase profits and reduce their overheads and carbon footprint without affecting their energy supply or risking their finances.
  • This Platform provides capabilities for market participation (bidding, communication) and economic participation.
  • When compared to traditional power plants, the cost of establishing VPPs is extremely low, especially given the changing market and grid dynamics as a result of the energy transition.

 

Restraints:

  • Resistance from traditional utilities amid concerns about grid safety and stability.
  • The requirement for regulatory support.
  • Social acceptance
  • Infrastructure challenges

 

Recent Trends & Developments:

  • On September 17, 2020, The Federal Energy Regulatory Commission made a new rule on Distributed Energy Resources (DER). It's also creating the framework for major changes in the energy market and grid. The ruling, known as FERC 2222, aims to lower barriers to entry for distributed energy resources (DERs) and might boost electricity market competition.
  • On May 10, 2021, Kiwi Power has partnered with a Japanese leader in energy technology ENECHANGE to bring Japanese energy players in the Commercial & Industrial (C&I) sectors the technology and to participate in the country’s emerging flexibility programs featuring Virtual Power Plant (VPP) capabilities to monetise their underutilised energy assets.
  • In July 2020, Kiwi Power, along with ENGIE North America had expanded its sales presence in the North American market, offering advanced virtual power plant (VPP) software.
  • In early 2021, AutoGrid VPPs were dispatched 1,800 times connecting 100,000 of assets, delivering over 5GW of capacity under the contract and 37 GWh of energy when the electricity grid was most stressed.

 

Opportunities:

  • Turnkey VPPs- U.S.A, Germany.
  • Enrolment of Data Centers to VPPs.
  • Distributed generation assets - Asia Pacific (Australia, South Korea, Japan, and New Zealand), Europe, and North America.

 

Blackridge Research's Virtual Power Plant (VPP) market report provides insights into the current global and regional Global market demand scenario and its outlook.

 

This study offers a detailed analysis of various factors instrumental in affecting the Virtual Power Plant (VPP) market's growth. The study also comprehensively analyses the market based on the technology (Distributed generation and mixed assets) and geography (North America, Europe, Asia-Pacific, and the Rest of the world).

 

This report also includes the latest market trends, drivers and restraints, present and future opportunities, new projects, the global impact of Covid-19 on the Virtual Power Plant (VPP) market, and significant developments.

                                                                          

Further, the report will also provide Virtual Power Plant (VPP) or market size, demand forecast, and key competitors in the market.

  Table of Contents

1. Executive Summary

2. Research Scope and Methodology

3. Market Analysis

  • 3.1 Introduction
  • 3.2 Market Dynamics
    • 3.2.1. Drivers
    • 3.2.2 Restraints
  • 3.3 Market Trends & Developments
  • 3.4 Analysis of Covid-19 Impact
  • 3.5 Market Opportunities
  • 3.6 Market Size and Forecast

4. Industry Analysis

  • 4.1 Supply Chain Analysis
  • 4.2 Porter’s Five Forces Analysis

5. Market Segmentation & Forecast

  • 5.1 By Technology
    • 5.1.1 Distributed Generation
    • 5.1.2 Mixed Assets

6. Regional Market Analysis

  • 6.1 North America
  • 6.2 Europe
  • 6.3 Asia-Pacific
  • 6.4 Rest of the World

7. Key Company Profiles

  • 7.1 Kiwi Power
  • 7.2 Generac Grid Services (Enbala Power Networks Inc.)
  • 7.3 AutoGrid Systems, Inc.
  • 7.4 Centrica Plc
  • 7.5 Robert Bosch GmbH
  • 7.6 Next-kraftwerke
  • 7.7 ABB
  • 7.8 Siemens AG
  • 7.9 Enel X
  • 7.10 Flexitricity
  • 7.11 Schneider Electric SE
  • 7.12 General Electric Company
  • 7.13 Limejump Ltd
  • 7.14 EnerNOC, Inc.
  • 7.15 Comverge

8. Competitive Landscape

  • 8.1 List of Notable Players in the Market
  • 8.2 M&A, JV, and Agreements
  • 8.3 Market Share Analysis
  • 8.4 Strategies of Key Players

9. Conclusions and Recommendations

List of Tables & Figures

Abbreviations

Additional Notes

Disclaimer

  This report helps to:-

  • Gain a deeper understanding of the impact of Covid-19 on the Virtual Power Plant (VPP) market.
  • Equip yourself with rigorous analysis and forward-looking insights into the Virtual Power Plant (VPP) market across multiple regions.
  • Gain an understanding of uncertainty and discover how the most influential growth drivers and restraints in the regions will impact market development.
  • Assess market data and forecasts to understand how the demands across various segments evolve over the next few years.
  • Gain a comprehensive view of the emerging market trends and developments to assess market opportunities.
  • Be better informed of your competition by gaining access to detailed information and analysis of key industry players.
  • Keep on top of M&A developments, JVs, and other agreements to assess the evolving competitive landscape and enhance your competitive position.

  Who need this report?

  • Power Utilities
  • VPP Operators
  • Transmission and distribution system operators
  • Energy regulatory agencies
  • Asset owners and Battery operators
  • Investor Community and Financial Companies
  • Government Bodies and Industry Organizations
  • Others

  What's included

Report - Global Virtual Power Plant (VPP) Market Outlook to 2028.pdf
Market Data - Global Virtual Power Plant (VPP) Market Outlook to 2028.xls

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