Covina, July 08, 2024 (GLOBE NEWSWIRE) -- According to research report published by Prophecy Market Insights, the virtual power plant (VPP) market size and share was valued at USD 2.1 Billion in 2024 and is forecast to increase to USD 15.8 Billion by 2034, experiencing a CAGR of 24.8%.
Virtual Power Plant Market Report Overview
A linkage of decentralized, intermediate power-generating units with adaptable consumers and storage devices is known as a virtual power plant. A network of autonomous medium-sized power generating units, adaptable power consumers, and storage devices is known as a virtual power plant. Depending on the status of the market, virtual power plants might engage in a range of activities. The idea is to link these distributed energy sources so that their electrical generation can be predicted, sold, and tracked. Solar parks, wind farms, and combined heat and power units fall under this category. This will therefore enable a modification in the controlled units' power output and consumption to counteract variations in the production of renewable energy through aggregation. However the virtual power plant market does more than encourage stability in the electrical grid. Above all, it lays down the conditions for market integration of renewable energy sources. Generally speaking, small plants are unable to provide system services or power trade flexibility on an individual basis.
The distributed energy resources, such as solar parks, wind farms, and combined heat and power units, were networked by virtual power plants so that they could be predicted, optimized, and exchanged for power. By varying the power generation and consumption of controllable units, it aids in balancing variations in renewable generation. Moreover, virtual power plants are essential components of the framework that permits the market integration of renewables and stabilizes electricity networks. Offering balancing services or flexibility on power exchanges is frequently prohibited by a small plant's generating profile or incapacity to meet the market minimum bid size. Virtual power plants can trade on the same markets as large central power plants or major industrial users because they can bundle power from multiple units in a way that offers the same service and redundancy.
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Our Free Sample Report includes:
- Overview & introduction of market study
- Revenue and CAGR of the market
- Drivers & Restrains factors of the market
- Major key players in the market
- Regional analysis of the market with a detailed graph
- Detailed segmentation in tabular form of market
- Recent developments/news of the market
- Opportunities & Challenges of the Market
Competitive Landscape:
The Virtual Power Plant Market is characterized by rapid growth, technological innovation, and fierce competition. Companies are expanding their global presence, focusing on sustainability, and diversifying their service offerings to stay competitive.
Some of the Key Market Players:
- Siemens
- General Electric
- Tesla
- Sunverge Energy, Inc.
- ABB
- Next Kraftwerke
- AGL Energy
- Open Access Technology International, Inc.
- Flexitricity Limited
- Limejump Limited
- Toshiba Energy Systems & Solutions
- Hitachi, Ltd.
- Olivene, Inc.
- AutoGrid Systems, Inc
- Centrica.
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Analyst View:
In an attempt to connect disparate energy sources for the purpose of forecasting, marketing, and tracking their electrical production output, flexible consumers, independent medium-sized power plants, and storage units can all be considered components of a virtual power plant. These resources, which include solar parks and wind farms, enable controlled units to have their required power output or consumption readjusted to account for variations in the production of renewable energy. These power plants are essentially a market for renewable energy supplies that stabilize the system. Virtual power plants are becoming more and more popular, much like interest in renewable energy sources such as solar and wind energy storage systems is growing. Due to new developments in artificial intelligence and machine learning, real-time autonomous behavior of VPPs will soon be realized, thereby increasing grid benefits and profitability.
Virtual Power Plant Market Report Scope
| Report Attributes | Details |
| Market value in 2024 | USD 2.1 Billion |
| Market value in 2034 | USD 15.8 Billion |
| CAGR | 24.8% from 2024 – 2034 |
| Base year | 2023 |
| Historical data | 2019-2022 |
| Forecast period | 2024-2034 |
Market Dynamics:
Drivers:
Growing interest in using renewable energy
- Growing use of renewable energy sources, such as solar and wind energy storage systems, is the reason behind the growing interest in virtual power plants. Economics is predicted to drive this, over state clean energy programs and utility-set decarbonization targets. All of the aforementioned unpredictability and intermittency can be managed by virtual power plants, giving the grid flexibility and stability. When compared to building new conventional power plants and transmission infrastructure, they are also thought to be more affordable ways to update the grid and slow the growth of peak demand. Furthermore, the potential of virtual power plants to facilitate the integration of renewable energy sources and modernize the system has been assessed by a number of states and grid operators.
Economic viability of virtual power plants
- Virtual power plants are now considered economically feasible due to the declining costs of renewable energy technology, optimization of distributed energy resources, possible savings on grid expenses, and growing adoption of renewable energies. In addition to the declining costs of energy storage, wind, and solar power, virtual power plants (VPPs) can offer better cost-effectiveness than traditional power plants. To provide affordable grid services, VPPs can coordinate and aggregate dispersed energy resources like batteries and rooftop solar. A combination of small-scale PV plants and VPPs is economically feasible, according to techno-economic models. VPPs must offer an alluring and cost-effective option for modernizing the grid and integrating renewable energy as these trends continue.
Market Trends:
Growing need for grid services
- Huge potential is presented to the virtual power plant market by the growing demand for grid ancillary services and the availability of prospects for virtual power plants to participate in the capacity and ancillary services markets. Flexible assets are needed as the world moves toward renewable energy in order to maintain grid stability and react swiftly to supply-demand imbalances. This could be satisfied by using virtual power plant management of distributed energy resources, which provides demand response, voltage regulation, primary frequency control, and other features. Consequently, this would allow virtual power plants to compete fully in the markets for wholesale electricity, capacity, and ancillary services which have historically been dominated by major generating power plants. Advances in machine learning and artificial intelligence also ostensibly support the notion that virtual power plant could be able to take autonomous action in real time to guarantee improved grid benefits and financial returns.
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Segmentation:
Virtual Power Plant Market is segmented based on Technology, Source, and Region.
Technology Insights
- This segmentation is divided between distribution generation, demand response and mixed assets. The goal of the distributed generating industry is to include small renewable energy sources, such as micro combined heat and power systems, wind turbines, and solar photovoltaic panels, into virtual power plants. They provide the grid with a number of advantages, including as increased resilience, decreased transmission losses, and localized energy production. One of the fastest-growing industries is demand response systems, which let users adjust how much electricity they use in reaction to price signals or grid conditions. Distributed generation and demand response technologies are combined into a single virtual power plant using a mixed-asset strategy to maximize grid performance while maintaining maximum flexibility. With demand response programs, hybrid VPPs can adjust dynamically to changes in the grid circumstances, such as an increase in generation from remote sources or a drop in demand.
Sources Insights
- The sources can be renewable energy, energy storage, and cogeneration. In order to minimize oscillations and offer a consistent electrical supply, virtual power plants can make use of solar and wind power. In order to stabilize the grid, virtual power plants can also store excess renewable energy produced during times of peak generation and release it during times of peak demand. Cogeneration systems for electricity and heat are additional features that can be added to a virtual power plant in order to improve waste heat use and energy efficiency.
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Recent Development:
- In January 2024, AutoGrid planned to join forces in 2024 with fellow VPP software specialist Uplight Inc. to steer small-scale energy resources to generate, save, or shift power to provide grid services that typically come from large-scale plants. Schneider Electric SE intends to sell AutoGrid to Uplight, the companies announced. Schneider Electric is AutoGrid's France-based parent and a strategic investor in Uplight.
- In May 2024, Virtual power plants could ease the growing strain on the US electric grid. Energy-saving networks that link smart devices, solar panels, and batteries could regulate power demand and help avoid fossil fuel use at peak times.
Regional Insights
- North America: The North America virtual power plant industry is based on a foundation of modern energy infrastructure, supportive legislation, and a significant emphasis on grid stability. Demand response initiatives, AI in the management of a virtual power plant, and the integration of EV charging networks are given particular focus, with the US and Canada leading the way.
- Europe: Europe has high goals for decarbonization and aggressive targets for renewable energy, making it a likely contender for the top spot in the global virtual power plant market. On this continent, strong smart grid infrastructure and a very supportive, efficient regulatory environment that includes the EU's Clean Energy Package may also be key factors driving the rapid deployment of virtual power plants.
Browse Detail Report on "Virtual Power Plant Market Size, Share, By Technology (Distribution Generation, Demand Response, and Mixed Asset), By Source (Renewable Energy, Energy Storage, and Cogeneration), By End-User (Utilities, Commercial, Industrial, and Residential), and Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) - Trends, Analysis, and Forecast till 2034" with complete TOC @ https://www.prophecymarketinsights.com/market_insight/virtual-power-plant-market-5409
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