Virtual Power Plant Market to Grow Due to Increased need of IoT Applications
The rising demand for
renewable energy in the power generation sector and changes in the dynamics of
power grids from centralized to distributed are factors expected to drive the market for
Global Virtual Power Plant in the forecast period of 2024-2028.
According to
TechSci Research report, Virtual Power Plant Market - Global Industry
Size, Share, Trends, Opportunity, and Forecast. 2018–2028F, the global virtual
power plant market is anticipated to register a robust growth during the
forecast period 2024-2028. The Global Virtual Power Plant market is being driven
on account of increasing demand for more renewables adoption and integration of
intermittent and distributed energy resources, (DER) supported by big data
analytics for monitoring and forecasting to optimize the dispatch of power load.
Moreover, the growing investment and strategic partnerships within service
providers along with increasing acceptance of innovative
technologies such as cloud platforms and Internet of Things (IoT) applications
in power industry will positively influence the global virtual power plant market
in the upcoming years. The extensive use of smart applications, on-site
generators and flexible heating and cooling loads in various sectors are
anticipated to act as a catalyst in the growth of the Virtual Power Plant market.
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The virtual power plant
market is segmented into technology, component, source, end-user, and region. Based
on technology type, the market is bifurcated into distribution generation,
demand response and mixed assets. Based on components, the market is segmented
into software and services. Based on source, the market is categorized into
renewables, energy storage, combined heat and power and other local generation.
The end-user segment is further categorized into industrial, commercial, and residential.
Based
on technology, the demand response is expected to dominate in the virtual power
plant market in the forecast period, owing to the rising investments in demand
response solutions with increasing requirement for improving the overall
efficiency of any grid technology. This is attributed to higher and faster
adoption rates of this technology in developed nations by electric system
planners and operators as response options for balancing the supply and demand.
Furthermore, growing investment in
demand response solutions due to various benefits offered such as peak load
management and earning incentives by participating in demand response program are
also contributing in expanding the revenue growth of virtual power plant during
the forecast period.
On the
basis of source segment, renewables are expected to dominate in the virtual power
plant market due to the requirement of decarbonized cost-effective
decentralized system for power generation and power consumption. Furthermore, rising
government initiatives and regulations for consumption of renewable resources
for ecologically friendly power generation are likewise facilitating the renewable
resources solutions to cater the demand of power generation sectors. Hence, renewable
segment is projected to expand during the forecast period.
Based
on end-user model, the residential segment dominates the largest share in the
overall virtual power plant market and is expected to remain dominant in the
forecast period as numerous users are seeking for smart meters applications for
more customized and purpose-built solutions. The growing adoption of applications such as
smart home appliances and home energy management system (HEMS), Internet of
Things (IoT), Smart thermostats and sophisticated management software are
enabling more flexible billing and visibility of energy transactions. Furthermore, several investments and initiatives taken by
the governments for demand response programs and energy storage systems, are boosting
the growth of virtual power plant market globally.
Key
market players in the virtual
power plant market:
- ABB
Ltd.
- Siemens AG
- Schneider Electric SE
- EnerNoc, Inc.
- Comverge, Inc.
- AutoGrid System Inc.
- Flexitricity Limited
- General Electric Company
- AGL Energy
- International Business Machines Corporation
Recent
Developments:
On November 02, 2022, The Puerto
Rico Electric Power Authority announced the strategic partnership with Sunrun Inc.
to develop a 17-Megawatt virtual power plant for Puerto Rico’s electric utility.
The collaboration believes in a strategic approach to accelerate deployment
that will lower energy cost for residence and improve grid availability by
connecting 7,000 rooftop solar-plus-battery systems.
On September 22, 2022, AutoGrid, an
industry leader in virtual power plant, announced a collaboration with Canadian
manufacturer Mysa, to launch utility scale virtual power plant. The company
aims to use smart and innovative thermostat technology for grid modernization
which offers robust home energy management capability for both consumers and
utility.
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“North America is estimated to hold the
largest market share in the global virtual power plant market, owing to the
growth in demand for hybridization services in the United States. However, Asia
Pacific has also experienced significant growth for the virtual power plant
market throughout the forecast period. The expanding capacity of renewable
power plants with rising need for electrification, ecofriendly renewable
energy, higher grid stability, and technical advancement for digital economy has
significantly increased the demand for virtual power plants. Additionally, it
is anticipated that the market would rise as robust infrastructure for electric
vehicles and long-term carbon solutions are increasingly adopted. High-speed
networks like cloud platforms, IoT, 5G services and the use of digitization in
manufacturing, energy & utility, logistics and healthcare are further anticipated
to fuel market expansion in North America.” said, Mr. Karan Chechi, Research
Director with TechSci Research, a research based global management consulting
firm.
“Segmented By Technology (Distribution Generation, Demand Response and
Mixed Asset), By Component (Software and Service), By Source (Renewables,
Energy Storage, Combined Heat and Power, Other Local Generation) By End User (Industrial,
Commercial and Residential), By
Region, Competition, Forecast & Opportunities, 2018-2028F” has evaluated the future growth
potential of global virtual power plant market and provides statistics &
information on market size, structure, and future market growth. The report
intends to provide cutting-edge market intelligence and help decision makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in the virtual power plant market.
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