Virtual Power Plant
The global virtual power plant market was valued at $762 million in 2016, and is expected to reach at $4,587 million by 2023, registering a CAGR of 25.9% from 2017 to 2023. Virtual Power plant (VPP) comprises of a multitude of decentralized, grid-connected energy units installed as an integrated component for flexible electricity production. The number of distributed resources are centrally controlled and managed as part of an interrelated network.
Rise in demand for renewable energy in power generation sector, changes in dynamic of power grids from centralized to distributed, and moderating costs and easy accessibility of energy storage drive the growth of the virtual power plant market. Despite, health concerns over high frequency human exposure of electromagnetic and radio waves hamper the potential of the market for different end users. Conversely, emerging shift toward electric vehicles and promotion of intelligent office buildings and smart grids, is expected to create opportunities in the market.
The global virtual power plant market is segmented based on technology, end user, and geography. By technology, it is classified into distribution generation, demand response, and mixed asset. Based on end user, it is divided into commercial, industrial, and residential. The prominent players in the global virtual power plant market focus on product development and agreement as their key strategies to gain significant market share.
The VPP program seeks to demonstrate the value that grid-connected batteries can create for a range of stakeholders when managed as part of a coordinated virtual power plant.
