Top 10 Key Companies in the Virtual Power Plant Industry, Worldwide [2022]

The global energy demand has increased exponentially over the past two decades. The global population has dramatically increased while urbanization and industrialization are advancing astronomically. This has led to an increased demand for renewable energy and has opened lucrative growth avenues for virtual power plants. A virtual power plant is an aggregated decentralized power station that comprises decentralized energy/power systems aimed to combine the energy from distributed sources such as hydroelectric plants, wind turbines, solar PV cells, and others. This power plant is a medium-scale power-producing unit that provides efficient power propagation even at peak load periods. A central control system that processes a huge information range connects the different mixed assets of the plant. As per a report by Fortune Business Insights™, the market for the virtual power plant was valued at USD 0.87 billion in 2019 and is projected to grow to USD 2.85 billion by 2027, registering a CAGR of 27.2% during the 2020-2027 period.

Though the rapid spread of the coronavirus pandemic resulted in reduced investments; increasing digitization, rising adoption of renewable energy resources, and growing adoption of electric and hybrid vehicles are expected to uptick the global energy demand, which is beneficial for such power plants.

Fortune Business Insights^TM identifies the following as the top 10 key virtual power plant companies-

ABB

The company encompasses a developed system in power and utility solutions that optimizes energy production. It emphasizes obtaining new opportunities by information and energy flow in energy management and industrial processes. The company helped Jibei Electric Power Co. Ltd., a Chinese utility state grid, in August 2020, to build a virtual power plant with the customization of smart distribution, coordination, and metering control.

Siemens

The company engages in the distribution of resource-saving and energy-efficient technologies that include decentralized power generation, supply, and demand for energy resources for a plethora of use cases. The company generated annual revenue of USD 65.17 billion in 2020. It developed an ingenious business model in November 2020 to grow its latest technology and virtual power plant at Sinebrychoff’s energy storage contract. It is one of the first companies to create power flexibility examples at an industrial site. It utilizes digitalization to create the potential for saving and enhancing the power supply quality.

GE

General Electric offers power assets and digital infrastructure for virtual power plants globally. The company is rigorously progressing in this industry with products such as digital power plants. In July 2020, Portland General Electric (PGE) planned the commencement of a pilot program out of the residential energy storage batteries for a 4MW virtual power plant based in Portland, Oregon, U.S. The project will help the company to combine more renewable energy and improve grid capabilities.

Schneider Electric

The company specializes in energy-efficient technologies, digital solutions, and automation that emphasize sustainable efficiency. It provides an EcoStruxture platform that offers solutions in industrial automation, energy management, and digitalization. The platform is boosting the electric world’s digital transformation. In January 2020, the company unveiled the DERS grid management system with AutoGrid. It optimizes and incorporates diverse assets, including demand response energy storage and EV charging.

Enel X

A subsidiary company of the Enel Group is a pioneer in demand response globally. The company offers a broad range of products across energy management solutions and services for industrial and commercial applications. In January 2020, it accumulated a residential energy storage system in Italy. This helped the company to pool its capabilities and optimize its network by using a virtual power plant.

Cisco Systems Inc.

The company possesses expertise across utility and smart grids. It provides digital solutions in the energy industry, including system visibility, connectivity, security, and others. The growing adoption of partnerships, technological advancements, and product portfolio diversifications acts as the company’s major growth pillars. It emphasizes a sustainable future via its energy-related services.

Bosch

The company majorly focuses on the objective to provide the connected living with solutions and products. It uses eco-friendly energy by managing power plants and building on several mobilities, energy, and connected city initiatives. Devising relevant strategies and persistent innovations in energy solutions make Bosch a critical market player globally.

Hitachi Ltd.

The company offers energy solutions in distributed energy resources, power generations, and storage batteries. It is currently conducting a corroboration operation of VPP by using electric vehicles in the U.S. and the U.K. It is also adopting energy sources supplied to the consumers. The company was selected to deploy its innovative energy solution to support storage energy solutions for the development of Singapore’s first Virtual Power Plant project in February 2021. The company’s PowerStore battery energy storage systems are claimed integral to the VPP infrastructure for grid stability and other aspects.

Mitsubishi

It provides an assorted range of products in energy management, including DR systems, which utilize the self-generation facilities of consumers for balancing supply and demand in the electric power market. The company contributes continuously to better and effective use of self-generation facilities, which is crucial for VPP’s future. The company conducted trial operations in August 2020 to demonstrate the commercial application of vehicles to grids (V2G), which uses the electric vehicle as an energy source. It aims to demonstrate how PHEV/EV can be leveraged as VPP resources, thereby enabling the development of renewable energy sources with power grid stabilization.

AGL Energy

It is one of the leading integrated energy business companies with the largest private electricity generation within the Australian National Electricity Market. The company emphasizes electricity generation by optimizing current portfolio strategies for enhanced performance & value and expanding the core energy market offerings. It expanded its VPP with solar battery cells and installation for residential consumers in Queensland, New South Wales, and Victoria in September 2020.

In conclusion, the rising emphasis on renewable energy sources for power generation is anticipated to surge the demand for these types of power plants. Favorable government initiatives and ingenious growth strategies adopted by the top virtual power plant companies are anticipated to influence the future of these power plants.