Virtual Power Plant (VPP) market is projected to grow at a CAGR of 21.1% by 2034: Visiongain
Visiongain has published a new report entitled Virtual Power Plant (VPP) Market Report 2024-2034: Forecasts by Component (Software, Hardware), by Technology (Demand Response VPP, Distributed Generation VPP, Mixed Asset VPP), by End-user (Residential, Commercial, Industrial, Utility), by Generation Source (Solar PV, Wind Power, Combined Heat and Power (CHP) Units, Energy Storage Systems, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
The global virtual power plant (VPP) market was valued at US$2,186.6 million in 2023 and is projected to grow at a CAGR of 21.1% during the forecast period 2024-2034.
Demand for Decentralized Power Generation and Energy Independence
The demand for decentralized power generation and energy independence propels the global VPP market. VPPs empower consumers to generate, store, and manage their energy locally, fostering a more resilient and self-sufficient energy ecosystem. In Australia, the Decentralized Energy Exchange (deX) exemplifies how VPPs enable decentralized power generation, offering consumers greater control over their energy production and consumption.
Grid modernization initiatives and the integration of smart grid technologies drive the global VPP market. VPPs actively participate in modernizing grids by incorporating advanced communication and control systems. The Pacific Gas and Electric Company’s collaboration with Sunrun illustrates how VPPs contribute to smart grid integration, enabling real-time communication between distributed energy resources and the utility for enhanced grid management.
Download Exclusive Sample of Report
How has COVID-19 had a significant negative impact on the Virtual Power Plant (VPP) Market?
The COVID-19 pandemic has significantly impacted the Virtual Power Plant (VPP) market, introducing challenges and opportunities that have reshaped the energy landscape. One of the immediate effects was a slowdown in the deployment of new VPP projects due to disruptions in the supply chain, workforce shortages, and delays in project financing. Lockdowns and restrictions hindered on-site installations and commissioning, leading to project postponements across the globe. Uncertainties in economic conditions further restrained investments in energy infrastructure, affecting the growth trajectory of the VPP market.
However, amidst the challenges, the pandemic underscored the importance of resilient and adaptive energy systems, creating opportunities for VPPs to play a crucial role. The increased focus on remote monitoring and control capabilities inherent in VPPs became vital during periods of restricted physical access to energy facilities. The demand for reliable and flexible energy solutions grew as businesses and utilities sought ways to ensure continuity and responsiveness in the face of disruptions. VPPs, with their ability to integrate diverse distributed energy resources and optimize grid operations, gained recognition as valuable assets in enhancing energy resilience.
How will this Report Benefit you?
Visiongain’s 367-page report provides 120 tables and 170 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the global virtual power plant (VPP) market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for Virtual Power Plant (VPP). Get financial analysis of the overall market and different segments including component, technology, end-user, and generation source and capture higher market share. We believe that there are strong opportunities in this fast-growing virtual power plant (VPP) market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.
What are the Current Market Drivers?
Ongoing Innovation and Research Fueling VPP Advancements
The dynamic landscape of Virtual Power Plants (VPPs) is marked by continuous innovation and dedicated research, propelling substantial improvements and fostering broader adoption within the energy sector. The persistent commitment to technological advancement in VPPs reflects a proactive response to the evolving challenges and opportunities in the energy landscape. Innovations encompass a spectrum of areas, including software optimization, integration of advanced control systems, and the exploration of cutting-edge technologies.
Virtual Power Plants Could be Pathway to Decarbonization
The Biden administration’s ambitious target of achieving a net-zero carbon economy by 2050 has prompted a strategic focus on innovative solutions to address climate change. Virtual power plants (VPPs) have emerged as a promising avenue to support this goal. VPPs leverage advanced software to enhance control over renewable electricity generation, addressing the inherent volatility of renewable sources on the electrical grid. Blake Richetta, the Chairman and CEO of Sonnen Inc., a prominent battery developer, emphasizes the transformative role of VPPs in consolidating disparate forms of variable generation into a cohesive and reliable power source.
Get Detailed ToC
Where are the Market Opportunities?
Countries Worldwide Recognize the Benefits of Smart, Distributed Energy Systems
The global extension of VPP market opportunities stems from a widespread recognition among countries of the benefits associated with smart, distributed energy systems. As nations strive to address climate change, enhance energy security, and transition to sustainable practices, VPPs emerge as a crucial solution. They offer a decentralized approach to energy generation and consumption, aligning with the global push towards renewable energy sources. Governments and regulatory bodies are increasingly acknowledging the role of VPPs in achieving energy goals, creating favorable policies, and providing incentives for their implementation. The expanding global market reflects a collective commitment to building resilient, efficient, and environmentally friendly energy infrastructures.
Increasing Adoption of Residential Solar, Storage, and Smart Home Technologies Contributes to the Growth of VPPs
The rise in the adoption of residential solar panels, energy storage solutions, and smart home technologies presents a substantial opportunity for the growth of Virtual Power Plants (VPPs). As more households integrate solar systems and storage devices, they become potential participants in VPPs. These distributed energy resources, when aggregated through VPPs, create a flexible and responsive network. Residents benefit from optimized energy consumption, reduced costs, and increased reliability. VPPs leverage the distributed nature of these residential technologies to contribute to grid stability, demand response programs, and overall efficiency. The synergy between individual residential choices and the collective impact within VPPs represents a promising avenue for sustainable energy development.
The major players operating in the virtual power plant (VPP) market are ABB Ltd., Cisco Systems Inc., Cpower Energy Management, Enel X, Engie SA, General Electric Company, LO3 Energy Inc., Next Kraftwerke, Schneider Electric SE, Siemens AG, Spirae Inc., Sunverge Energy Inc., Swell Energy Inc., Sympower, Tesla, Inc. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launch.
- October 31, 2023, Schneider Electric SE has entered into a new partnership with Sunverge Energy to develop and deploy virtual power plants (VPPs) around the world. The partnership will combine Schneider Electric’s expertise in energy management and automation with Sunverge’s experience in distributed energy resources (DERs) and energy storage.
- 23 Aug 2023, ABB will provide its e-meshTM PowerStoreTM battery energy storage system (BESS) to support the development of Singapore’s first Virtual Power Plant (VPP) project.
- 28 July 2023, Siemens AG has partnered with Finnish energy company Sinebrychoff to implement a virtual power plant (VPP) at Sinebrychoff’s plant in greater Helsinki. The VPP will combine Sinebrychoff’s renewable energy sources, energy storage, and flexible loads to create a more sustainable and efficient energy system.
To access the data contained in this document please email [email protected]
Avoid missing out by staying informed – order our report now.
To find more Visiongain research reports on the power sector, click on the following links:
- Grid-Scale Battery Storage Technologies Market Report 2023-2033
- Liquefied Natural Gas (LNG) Storage Tank Market Report 2021-2031
- Floating LNG Power Vessel Market Report 2021-2031
- Industrial Biomass Boiler Market Report 2020-2030
Do you have any custom requirements we can help you with? Any need for a specific country, geo region, market segment or specific company information? Contact us today, we can discuss your needs and see how we can help: [email protected]
Visiongain is one of the fastest-growing and most innovative independent market intelligence providers around, the company publishes hundreds of market research reports which it adds to its extensive portfolio each year. These reports offer in-depth analysis across 18 industries worldwide. The reports, which cover 10-year forecasts, are hundreds of pages long, with in-depth market analysis and valuable competitive intelligence data. Visiongain works across a range of vertical markets with a lot of synergies. These markets include automotive, aviation, chemicals, cyber, defence, energy, food & drink, materials, packaging, pharmaceutical and utilities sectors. Our customised and syndicated market research reports offer a bespoke piece of market intelligence customised to your very own business needs.