DUBLIN–(BUSINESS WIRE)–The "Virtual Power Plant Market by Technology and by End User: Global Opportunity Analysis and Industry Forecast, 2020-2027" report has been added to ResearchAndMarkets.com's offering.
The global virtual power plant market was valued at $1.3 billion in 2019, and is projected to reach $5.9 billion by 2027, growing at a CAGR of 21.3% from 2020 to 2027.
Virtual power plant, an aggregated decentralized power plant, consisting of decentralized power systems with the purpose to integrate different distributed energy sources such as solar PV cells, wind turbines, and hydroelectric plants. Additionally, virtual power plant offers efficient power generation even at peak load periods with a scope to trade or sell power in trading market. Virtual power plant is medium scale power generating unit integrating different renewable energy sources for solar, wind and other flexible power consumers and storage systems. A virtual power plant consists of different mixed assets that are connected via central control system processing wide range of information, such as current prices at the power exchange, price and weather forecasts, and grid information of the system operators.
Growing penetration for renewable energy in power generation sector coupled with shifting trend of power grids from centralized to distributed is expected to drive the market growth. Further reduction in energy cost and easy accessibility of energy storage will boost the market demand. For instance, Tesla reported in their recent virtual power plant project 70% decrease in grid consumption, while bills have been reduced by up to 30%. Additionally, VPP is highly efficient and flexible to deliver during the peak load electricity in a short notice period compared to conventional power plant set up that will further drive the market growth.
Flexibility in trading with virtual power plant due to price volatility attracted lot of new participants. Customers can sell excess energy at trade market as well as buy energy at lower price. Such features of virtual power plant is expected to further fuel the demand. However, high-frequency of electromagnetic and radio waves leads to health concerns in infants and old people, which may hamper this growth. Nonetheless, stringent government regulations regarding eco-friendly power generation will further enhance the market for renewable energy, thus fueling the demand for virtual power plant market.
The global virtual power plant market is segmented based on technology, end user, and region. Based on technology, it is categorized into distribution generation, demand response, and mixed asset. Based on end user, it is divided into commercial, industrial, and residential. Based on region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
- The global virtual power plant market analysis covers in-depth information of major industry participants.
- Porter's five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides an in-depth analysis of the global virtual power plant market forecast for the period 2020-2027.
- The report outlines the current global virtual power plant market trends and future estimations of the global virtual power plant market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- The key drivers, restraints, and global virtual power plant market opportunity and their detailed impact analysis is elucidated in the study.
- China is projected to grow at the highest CAGR of approximately 30.3%, in terms of revenue, during the forecast period.
- By technology, the mixed asset segment is anticipated to grow with a CAGR 23.1%, in terms of revenue, during the forecast period.
The rest of the Europe region dominated the market with highest revenue shares in 2019
- Rise in Demand for Renewable Energy in Power Generation Sector
- Changes in Dynamic of Power Grids from Centralized to Distributed
- Moderating Costs and Easy Accessibility of Energy Storage
- Limited Options for Complex Design Structure
- Health Concerns Over High-Frequency Human Exposure of Electromagnetic and Radio Waves
- Emerging Shift Towards Electric Vehicles and Promotion of Intelligent Office Buildings and Smart Grids
- ABB Ltd.
- AGL Energy
- AutoGrid Systems Inc.
- Enbala Power Networks
- Enel X Inc.
- General Electric Company
- Siemens AG
- Schneider Electric SE
- Limejump Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/miq6zn
Laura Wood, Senior Press Manager
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