02-Jul-2021 | Facts and Factors
According to Facts and Factors, the global virtual power plant market was valued at USD 1.57 Billion in 2020 and is expected to produce over USD 5.02 Billion in revenue by the end of 2026, with a CAGR of approximately 21.3% between 2021 and 2026.
A virtual power plant (VPP) consists of a basic IT control framework, distributed renewable energy assets, hydropower units such as solar, wind, and biomass, and flexible power consumers, all of which are controlled by a single remote control unit. After that, the data flow between the core fire control system and the participating units is set up. The basic flight control system is then unable to monitor, forecast, or send the networked devices. The purpose of a virtual power plant (VPP) is to seamlessly integrate a large number of non-conventional energy units into existing central energy networks. It occurs as a result of all networked elements' flexibility. In a virtual power plant design, electricity providers might also use real-time data to improve renewable energy projections and trade. As a result, by selling their products on wholesale markets and obtaining grid-balancing authority, virtual power plants increasingly take over the job of traditional power plants.
A virtual power plant is made up of medium-scale, decentralized power sources like solar panels, CHP units, and wind farms, as well as flexible power consumers and batteries. The virtual power plant's main control center dispatches the joined units, but their process and possession remain self-governing. The virtual power plant's main objective is to ease grid stress by quickly dispensing the power generated by individual units during peak loads. The energy interchange platforms also sell the interacted units in the virtual power plant's combined power generation and consumption.
The future business potential for VPP solutions is presented by the industry's rising knowledge of climate problems. The complete appeal of the VPP market, on the other hand, is significantly based on the expansion of supply flexibility/electricity demand commercial potential and, as a result, profits from capacity offered in the balancing energy market and electricity supply in the energy-only market. Given that the continuous expansion of renewable energies would increase volatility on the spot markets, the outlook is not too grim. The creation of internal peer-to-peer trading platforms or the establishment of grid greater flexibility marketplaces for the effective minimization of grid bottlenecks is further marketing potential. As a result, future regulatory framework conditions will have a substantial impact on the quality and speed of developments in cooperative VPPs, which is a common occurrence in energy markets.
Top Market Players
Major players operative in the virtual power plant market is ABB Ltd., Blue Pillar Inc., Cisco Systems Inc., Comverge, Hitachi, Ltd., Robert Bosch Gmbh, AGL Energy, AutoGrid Systems, Inc., Enbala Power Networks, Enel X Inc., General Electric Company, Siemens AG, Schneider Electric SE, Limejump Ltd., International Business Machines Corporation and among others.
VPP technology can bring all of the energy network's regulated dispersed energy sources together, allowing them to collaborate and integrate their different capabilities to fulfill specific EI needs. It makes use of key technologies like smart metering, communication, data processing, and so on, and it might be used as a framework for combining different energy sources, such as renewable energy, into a unified power source that contributes to system operation on a large scale. VPP's participation in other energy service sectors, such as auxiliary services, carbon trading, and so on, can make a big difference. It can also increase the utilization rate of distributed energy resources, letting the entire system run more smoothly and profitably.
A virtual power plant (VPP) is a cloud-based power system that pools the capacity of various energy resources such as solar parks, wind farms, and combined heat and power (CHP) units. The virtual power plants are used to relieve grid congestion during peak load periods by intelligently dispersing the power generated by each unit. The energy exchange will also trade the Virtual Power Plant's networked units' combined power generation and consumption. Virtual power plants are more effective and versatile in producing peak load electricity on short notice than traditional power plants. Caused by market instability, the increased flexibility of investment in virtual power plant attracted encouraged the attention of a large number of new investors. On the currency market, consumers can sell their extra energy and buy it at a lower price. Throughout the forecast period, these qualities are expected to raise demand for virtual power plant market size. Government regulations requiring ecologically friendly power generation will boost the renewable energy sector even further, boosting the virtual power plant industry to new heights.
Europe is projected to Dominate Global Virtual Power Plant Market Growth
Europe emerged as the largest virtual power plants market share due to having a large number of industry participants and new government plans on 100 percent green energy across various countries in Europe. Asia-Pacific has the fastest-growing virtual power plant market in the world. Increased energy demand in rapidly industrializing countries like China and India is to blame. For example, China accounts for 36 percent of the steel industry's annual contribution to global GDP by operating country. Because of the rising demand for renewable energy, the United States is expected to lead the market in North America, with significant demand for virtual power plants.
Browse the full report “Virtual Power Plant Market By Technology (Distribution Generation, Demand Response, and Mixed Asset) By Component (Energy Generation Technology, Energy Storage Technologies, Information Communication Technology (ICT)), By End User (Commercial, Industrial, and Residential), and by Regions: Global and Regional Opportunity Analysis and Industry Forecasts, 2021 - 2026” at https://www.fnfresearch.com/virtual-power-plant-market
The global virtual power plant market is segmented as follows:
• Distribution Generation
• Demand Response
• Mixed Asset
• Energy Generation Technology
• Energy Storage Technologies
• Information Communication Technology (ICT)
By End User:
• North America
o Rest of Europe
• Asia Pacific
o South Korea
o Southeast Asia
o Rest of Asia-Pacific
• Latin America
o Rest of Latin America
• Middle East & Africa
o South Africa
o Rest of Middle East & Africa
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