The Regulatory Landscape for Virtual Power Plants

Posted 2023-10-03 08:55:11

Market Research Future Insights

According to MRFR, the global Virtual Power Plant Market is projected to grow from USD 0.25 billion in 2022 to USD 1.5 billion in 2030, at a CAGR of 29.6% during the forecast period.

A virtual power plant is an aggregate decentralized power plant, composed of decentralized power systems to integrate various distributed power sources like photovoltaic solar cells, wind turbines, and hydroelectric plants. A virtual power plant is a cloud-powered distributed power plant that combines distributed energy resource volumes to trade, generate, and sell power sources in the market.

Energy is created and delivered by exercising small-scale technologies like wind turbines, solar cells, geothermal systems, and micro hydropower plants in the present's decentralized energy distribution networks worldwide. During power outages and periods of high energy demand, distributed generating systems, particularly when coupled with heat and power and emergency generators, can be used to deliver electricity. Expanded attention to decarbonization, electrification, digitalization and advancements in power production and storage technologies are substantial reasons for speeding the transition to distributed energy.

Due to the cost-cogency of renewable technology, distributed generating is getting more popular. Moreover, local and state government policies and laws support the higher deployment of renewable technologies because of their benefits, like as cheaper CAPEX and energy security driving the virtual power plant market growth.

The culturing investments for setting up new Virtual Power Plants are being witnessed as a substantial trend in the virtual power plant market. Conventional power plants demand huge capital for construction as well as management. Whereas, a Virtual Power Plant is a centralized control system, connected to power generating and transmitting units, which requires less capital and can integrate varied distributed energy resources. Worldwide players such as Tesla Inc. have declared large-scale investment plans for setting up Virtual Power Plants.

Key Players

· ABB Ltd. (Switzerland)

· Autogrid Systems Inc.(U.S.)

· Blue Pillar Inc. (U.S.)

· Cisco Systems Inc. (U.S.)

· Comverge (U.S.)

· Cpower Energy Management (U.S.)

· Enabala Power Networks Inc. (Canada)

· Enernoc Inc. (U.S.)

· Flexitricity Limited(U.K.)

· General Electric Company(U.S.)

· Hitachi Limited(Japan)

· International Business Machines Corporation(U.S.)

· Robert Bosch GmbH(Germany)

· Schneider Electric SE(France)

· Siemens AG(Germany)

Regional Analysis

The global Virtual Power Plant Market is divided into five regions; North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

North America is anticipated to have a substantial market share because of the huge number of Virtual Power Plants deployment projects sanctioned in the United States and Canada.

The European Union is steeping heavily in renewable energy and energy storage systems, herding demand for VPPs.

Asia- Pacific saw the topmost CAGR of 40% in the forecast period due to the augmenting demand for electricity in rural areas and accordingly more renewable energy generation.

The virtual power plant market is anticipated to witness blistering growth in the MEA region, substantially on account of the development of new renewable power projects in nations like Saudi Arabia, the U.A.E., and South Africa, which are presently initially dependent upon conventional sources of energy like coal, oil, and gas.

Market Segmentation

The global Virtual Power Plant Market Size is segmented into the following types;

By Technology: