Virtual Power Plant Market Share, Trends, Demand, Revenue, Competition, Challenges and Future Investment Opportunities Till 2033


Virtual Power Plant Market Share, Trends, Demand, Revenue, Competition, Challenges and Future Investment Opportunities Till 2033: SPER Market Research

 Category : Power & Energy

 Published: Feb-2024
 Author: SPER Analyst

Virtual Power Plant Market is projected to be worth USD 12.84 billion by 2033 and is anticipated to surge at a CAGR of 23.61%.

A virtual power plant integrates several distributed energy sources, including solar photovoltaic cells, wind turbines, and hydroelectric facilities. It is an aggregated decentralized power plant made up of decentralized power systems. Furthermore, virtual power plants provide effective power generation with the ability to buy or sell power on a trading market, even during moments of peak load. An intermediate-sized power producing unit that integrates several renewable energy sources, such as solar, wind, and other adaptable power consumers and storage devices, is called a virtual power plant. A virtual power plant is made up of several mixed assets connected by a central control system that processes a variety of data, including weather and price forecasts, current power exchange pricing, and system operator grid information. 

Global Virtual Power Plant Market Driving Factors and Challenges

The increasing need for unconventional energy in the power generation industry, the shift from centralized to distributed electricity grids, cost regulation, and the simplicity of using electricity storage energy are some of the factors propelling the growth of the global virtual power plant market. The growing need for electricity from a dependable power source, which is anticipated to propel the global industry during the forecast period, is another important driver propelling the market's expansion. Users can store extra energy in energy-storage devices like batteries and the virtual power plant helps to supply energy during peak usage hours. 

The transition from fossil fuels to renewable energy provides significant long-term environmental benefits, as evidenced by legislation adopted by the EU and seven US states. However, the negative impact on grid stability and electrical quality has already been documented in various countries. With the emergence of various alternative energy sources, particularly renewables, the grid is increasingly evolving into an active distribution network. In this situation, ensuring the stability provided by ancillary services becomes increasingly important, and providers of ancillary services, specifically virtual power plants (VPPs), face a difficult situation in which they want to benefit from the shift to renewable energy while maintaining their ability to deliver the service reliably and cost-effectively. 

Impact of COVID-19 on Global Virtual Power Plant Market
The COVID-19 pandemic has resulted in significant reductions in freight and electricity expenses for numerous networks across the globe. In the meantime, the output of renewable energy has not changed in spite of the coronavirus lockdown. Moreover, the global slowdown has reduced the demand for electricity generated by thermal sources.  

Virtual Power Plant Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as ABB LTD., AGL ENERGY LIMITED, AUTOGRID SYSTEMS, INC., ENBALA POWER NETWORKS, Enel x, INC., General Electric Company, Limejump Energy Ltd., SCHNEIDER ELECTRIC SE, SIEMENS AG and SUNVERGE ENERGY INC. 

Global Virtual Power Plant Market Segmentation:

By Technology: Based on the Technology, Global Virtual Power Plant Market is segmented as; Demand Response, Mixed Asset, Supply Side.  

By Vertical: Based on the Vertical, Global Virtual Power Plant Market is segmented as; Commercial, Industrial and Residential.

By Source: Based on the Source, Global Virtual Power Plant Market is segmented as; Cogeneration, Renewable Energy and Storage.

By Region: This research also includes data for North America, Asia-Pacific, Latin America, Middle East & Africa and Europe. 

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

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