Investor Empowerment: BCC Research provides insight into the dynamic virtual power plant market and highlights new opportunities and strategic partnerships.
BOSTON, May 22, 2024 /PRNewswire/ — “According to the latest BCC Research study, the demand for the Global Virtual Power Plant Market will reach $6.2 billion by 2028 with a CAGR of 21.5%.
This report offers a comprehensive analysis of the virtual power plant (VPP) market, focusing on technology, source end use, and regional development. It examines key countries like the U.S., Canada, China, India, and Germany for profitable opportunities in renewable power generation. Insights into leading companies, their products, and market trends are provided, alongside a patent analysis and ESG considerations. Market projections extend from 2023 to 2028, with values in U.S. dollars, emphasizing newly added annual VPP capacity.
Over the past few decades, the price of solar photovoltaic (PV) modules has fallen by a staggering 80%, while installed capacity has increased from 40 GW to more than 600 GW. This significant shift highlights the huge white space opportunity in the virtual power plant (VPP) industry. According to the International Energy Agency (IEA), the global energy landscape will be heavily invested by 2023, with an estimated US$2.8 trillion allocated to energy companies. Nuclear power, electric vehicles, and efficiency improvements. It is worth noting that the US, Germany, the UK, France, and China have emerged as the major revenue drivers in the global VPP market, accounting for more than 70% of the global market.
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Key Drivers of the Global Virtual Power Plant Market
Increasing Use of Renewable Energy in Power Generation: Renewable energy sources such as solar and wind are becoming more popular around the world as we move away from fossil fuels. Virtual power plants (VPPs) use resources such as rooftop solar panels and wind turbines to increase production capacity due to their ability to combine these resources.
Rising Investments in Adopting Smart Grids: A smart grid is a modern electricity grid that improves stability, reliability, and resilience by improving communication between producers, consumers, and operators. VPP integrates seamlessly with smart grids to optimize grid operations by managing energy flows from distributed energy sources (DERs) such as solar panels and batteries.
Growing Global Demand for Electricity: Electricity demand continues to grow due to population growth, economic development, and urbanization. VPP helps meet this demand by combining distributed energy sources to provide reliable power, thereby contributing to grid stability and resilience. As the demand for electricity increases, virtual power plants play a crucial role in ensuring a sustainable and efficient electricity supply.
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Report Synopsis
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Report Metrics |
Details |
|
Base year considered |
2022 |
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Forecast Period considered |
2023-2028 |
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Base year market size |
$2.1 billion |
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Market Size Forecast |
$6.2 billion |
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Growth Rate |
CAGR of 21.5% from 2023 to 2028 |
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Segment Covered |
By Technology, End-User, and Region |
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Regions covered |
North America, Europe, Asia-Pacific, and Rest of the World (Middle East & Africa and South America) |
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Key Market Drivers |
• Increasing Use of Renewable Energy in Power Generation • Rising Investments in Adopting Smart Grids • Growing Global Demand for Electricity |
Segmentation Analysis:
Technology Segmentation Analysis:
- Distributed Energy Resource (DER): DERs are decentralized energy sources like solar panels and wind turbines. Virtual Power Plants (VPPs) combine these resources to enhance grid stability and integrate renewable energy efficiently.
- Demand Response (DR): DR involves adjusting electricity usage in response to grid conditions. VPPs with DR capabilities help balance the grid by shifting energy consumption during peak demand, benefiting both utilities and consumers.
End-User Segmentation Analysis:
- Industrial: Factories and manufacturing facilities benefit from VPPs by ensuring reliable power and optimizing energy usage to meet high demands efficiently.
- Commercial: Offices, retail spaces, and commercial buildings use VPPs to manage energy costs, enhance grid resilience, and promote sustainability through technologies like rooftop solar panels and battery storage.
- Residential: Individual homes participate in residential VPPs, contributing excess solar energy and adjusting consumption to support community-based energy sharing and transition to cleaner energy sources.
This Global Virtual Power Plant Market Report contains comprehensive information and analysis covering the following key questions:
- What is the projected market size and growth rate of the market?
The global virtual power plant market was valued at $2.1 billion in 2022 and will reach $6.2 billion by 2028 with a CAGR of 21.5%. - What are the key factors driving the growth of the market?
- Increasing renewable energy usage in power generation boosts the global market.
- Increasing investments in adopting smart grids propel market growth.
- Increasing electricity demand worldwide is raising the VPPs market growth.
- What segments are covered in the market?
The virtual power plant market is segmented based on technology, end-user, and region. - Which segment will dominate the market by the end of 2028 by Technology?
The Demand response segment will dominate the market by 2028. - Which region has the highest market share in the market?
North America holds the highest share of the global market.
Some of the Key Market Players Are:
- 1KOMMA5
- ABB
- AGL ENERGY LTD.
- AUTOGRID SYSTEMS INC.
- CPOWER
- ENEL X NORTH AMERICA INC.
- FLEXITRICITY
- GENERAL ELECTRIC
- LIMEJUMP
- NEXT KRAFTWERKE
- SIEMENS
- STATKRAFT AS
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