Global Virtual Power Plant Market is expected to reach US$800 Mn by 2026 at a CAGR of 30.50% during the forecast period. Virtual Power Plant (VPP) refers to a cluster of small-scale generators, such as power (CHP) units and combined heat and, backup generator sets, biogas plants, which collectively act akin to a single large power plant.
Virtual Power Plan Market
The increase in residential energy storage system, as well as the increase in penetration of smart grid technologies, is some of the major driving factors expected to propel the virtual power plant market during the forecast period. Health concerns over high frequency human exposure of radio and electromagnetic waves hamper the potential of the market for different end users.
Global Virtual Power Plant Market is segmented by technology, end-user application, and region. Among technology segment, the demand Response segment is likely to have larger Virtual Power Plant Market share during the forecast period, owing to various benefits including earning incentives by participating in demand response program and peak load management.
Based on end-user segment, the Commercial & Industrial segment is expected to have the large Virtual Power Plant Market size during the forecast period. Industrial end-users are among the highest adopters of virtual power plant services and solutions and hence provide major contribution to the market growth. In the petroleum refining industry, the peak load of electricity is highest and followed closely by the chemical industry.
North America is expected to account for the largest Virtual Power Plant Market share during the forecast period. North America is advanced in terms of infrastructure and technology adoption. The rise in use of renewable in order to decline in costs of solar PV, reduce carbon footprint and battery energy storage and shift from centralized to distribution generation would propel the market growth. However, the Asia-Pacific is expected to record the highest growth rate during the forecast period, owing to the largest market for the industrial sector and infrastructure sector is taking various steps to reduce carbon footprint and produce clean energy which includes renewable energy such as hydro energy, solar energy, and wind energy generation.
Some of the key players are Alstom Grid, Bosch, GE Digital Energy, IBM, Schneider Electric Siemens, ENBALA Power Networks, Joule Assets, Power Analytics
The scope of the Global Virtual Power Plant Market
Global Virtual Power Plant Market, by Technology
• Demand Response
• Distributed Generation
• Mixed Asset
Global Virtual Power Plant Market, by End User:
Global Virtual Power Plant Market, By Region:
• North America
• Asia Pacific
• Middle East & Africa
• South America