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Virtual Power Plant Market to Soar at 27.2% CAGR till 2027; Escalating Power Demand from Residential Sector in Urban Areas to Fuel Growth

December 11, 2020 | Energy & Power

The global virtual power plant market size is projected to reach USD 2.85 billion by 2027 as a result of the increasing focus on improving the energy efficiency of the grid, shares states Fortune Business Insights™ in its report, titled “Virtual Power Plant Market Size, Share & COVID-19 Impact Analysis, By Technology (Demand Response, Distributed Generation, and Mixed Asset), By End-User (Industrial, Commercial, and Residential), and Regional Forecast, 2020-2027”. According to the report, the value of the market was at USD 0.87 billion in 2019 and is expected to grow at a CAGR of 27.2% from 2020 to 2027.


The COVID-19 pandemic is anticipated to restrict the virtual power plant (VPP) market growth as companies have delayed or cancelled their investment plans in renewable energy projects. Moreover, governments have been forced to postpone their power projects owing to the reduced workforce at project sites and the strict imposition of social distancing measures.


Generac Acquires Enbala Power Networks, Cements Position as Energy Technology Leader


In October 2020, US-based Generac Power Systems announced the acquisition of Enbala Power Networks, a specialist in distributed energy resources (DERs) technologies. The takeover consolidates Generac’s position as a leading provider of Smart Grid 2.0 technologies and with Enbala’s grid-stabilizing solutions Generac is slated to emerge as a major supplier of advanced grid services. In particular, the Enbala Concerto platform, which is widely adopted by utilities and energy companies worldwide for real-time balancing of energy needs, will enable Generac’s products to be leveraged in virtual power plants (VPPs) and DER management systems domains. This will allow back-up power generation assets to become part of the distributed energy system and boost revenues for companies.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/industry-reports/virtual-power-plant-market-101669


Incorporation of AI and IoT in Grid Infrastructure to Spawn Unparalleled Opportunities


Digitalization trends in the power sector have gathered momentum in the past few years and have brought the sector on the cusp of a massive transformation with the advent of artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML). These technologies hold the key to making grid systems more efficient as they enable better monitoring of assets, real-time data collection and analysis, and integration of new tools & technologies. Identifying their power and potential in enhancing power systems, some organizations have actively deployed AI-powered virtual power plants. For example, in April 2019, Toshiba launched a VPP embedded with AI and IoT, allowing power entities to aggregate output and control their grid connections and reducing the incidence of power outages due to inefficient grid management. In the UAE, the Dubai Electricity and Water Authority partnered with Canada-based Enbala to construct the region’s first AI-enabled VPP to strengthen renewable energy integration capacities of the emirate.


Development of Smart Energy Solutions to Stimulate Intense Competition


Governments around the world are exploring avenues to install smart energy management systems to optimize their grid operations and smoothly integrate renewable energy sources in the power mix. This is generating incredibly attractive opportunities for the key players in this market owing to their expertise in energy technologies. As a result, leading companies are ramping up investments in innovation and product launches to develop advanced energy management solutions and entrench their position in the market as well as expand their international footprint.


Industry Development:



  • April 2019: UK-based Moixa announced plans to design and develop a virtual power plant, which will unify electric vehicles, battery storage, and PV. The VPP venture is part of a 3-year Smart Hubs smart local energy system project, costing £40 million and backed by the West Sussex County Council and the Carbon and Energy Fund. 


List of Key Players Covered in the Virtual Power Plant Market Report:



  • Robert Bosch GmbH (Gerlingen, Germany)

  • Enernoc, Inc. (Massachusetts, US)

  • Comverge (Georgia, US)

  • Blue Pillar, Inc. (Indianapolis, US)

  • Enel X (Boston, US)

  • Next Kraftwerke (Cologne, Germany)

  • Schneider Electric (Paris, France)

  • ABB (Zurich, Switzerland)

  • International Business Machines Corporation (New York, US)

  • Hitachi, Ltd. (Tokyo, Japan)

  • Enbala Power Networks, Inc. (Canada and the US)

  • Cisco Systems, Inc. (California, US)

  • General Electric (Massachusetts, US)

  • AGL Energy (Sydney, Australia)

  • AutoGrid (California, US)

  • Siemens (Munich, Germany)


Further Market Research Report Findings:



  • The demand response segment held the largest market share of 78.1% in 2019 owing to the rising demand for efficient peak load management of grids.

  • North America holds a prominent position in the virtual power plant market share on account of supportive government policies promoting the adoption of smart energy management solutions. In 2019, the region’s market size was USD 0.32 billion.

  • Strong commitment to renewable energy targets is expected to propel the VPP market in Europe during the forecast period.


Table of Segmentation:








































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion)



Segmentation



By Technology



  • Demand Response

  • Distributed Generation

  • Mixed Asset



By End-User



  • Industrial

  • Commercial

  • Residential



By Geography



  • North America (the US and Canada)

  • Europe (United Kingdom, Germany, France, Italy, Spain, Russia, and Rest of Europe)

  • Asia Pacific (China, India, Japan, Australia, Southeast Asia, and Rest of Asia Pacific)

  • The Middle East & Africa (GCC, South Africa, and Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico, and Rest of Latin America)



 

Global Virtual Power Plant Market
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  • 2016-2018
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