Virtual Power Plant Market to Reach $6.47 Billion by 2028; Announcement of Tesla for its Virtual Power Plant in South Australia to Incite Development

The global virtual power plant market size is expected to exhibit tremendous growth by reaching USD 6.47 billion by 2028 from USD 0.88 billion in 2021. Fortune Business Insights in a report titled “Virtual Power Plant Market Size, Share & COVID-19 Impact Analysis, By Technology (Demand Response, Distributed Generation, and Mixed Asset), and by End-user (Industrial, Commercial, and Residential), and Regional Forecast, 2021-2028”, observes that the market size stood at USD 0.71 billion in 2020 and is expected to exhibit a CAGR of 32.89% between 2021 and 2028. The growing investments in renewable energy will contribute positively to the market growth in the forthcoming years.

Government initiatives have put a strain on national finances, forcing a rethinking of the renewable energy transition and delaying power sector changes. In the aftermath of the coronavirus, Vietnam planned to create a wholesale energy market by 2023, while Thailand's government-backed the construction of a state-owned single-buyer utility. As a result of the substantial investments in constructing energy infrastructure in emerging nations, the industry is projected to gain traction. Furthermore, the VPP market has been hit by a drop in demand in the power industry due to delays in power projects and industrial investments due to COVID-19.

Energy Storage Solution for Singapore’s First VPP by Hitachi ABB to Stimulate Growth

Hitachi ABB Power Grids, a global leader in power technologies, providing the most comprehensive grid portfolio, has been chosen to support the construction of Singapore's first VPP project with its unique energy storage technology. The Energy Research Institute @ Nanyang Technological University, Singapore (ERI@N) is leading the research, which is co-funded by Singapore's Energy Market Authority (EMA) and Sembcorp Industries (Sembcorp). The e-meshTM PowerStoreTM battery energy storage system (BESS) from Hitachi ABB Power Grids is an important element of the VPP infrastructure, balancing intermittent generation with smart and dynamic loads to ensure grid stability.

The VPP will allow electricity generated by Distributed Energy Resources (DERs), such as solar and other green sources, to be intelligently integrated into a utility-scale power system, mimicking a utility-scale power system. The VPP will optimize the power output of various resources situated all around the island using real-time data. VPP will automatically balance energy variations caused by solar intermittency. The company's new development will back the virtual power plant market growth due to the unlocking of new revenue streams, maximizing renewable integration, and lowering carbon emissions.

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

Surging Investments in Energy Storage to Bolster Growth

Extensive power shortages caused by insufficient power infrastructures and the failure to install integrated power systems to ensure long-term sustainability offers potential development prospects for the VPP market. This is due to the ability of a virtual power plant to aggregate scattered energy resources and storage devices. According to the Economic Research Institute for ASEAN's 2018 Distributed Energy System in Southeast Asia Report, DERs offer strong business opportunities because they combine wind, solar photovoltaic, geothermal, hydropower, and biomass under the business-as-usual (BAU) and alternative policy scenarios (APS).

Announcement of AutoGrid’s Largest Virtual Power Plant to Spur Competition

The intense market rivalry has resulted from an increase in the number of mergers and acquisitions. For example, in June 2019, AutoGrid announced that it would construct the world's largest VPP in Japan's storage and asset volume.

Key Development:

• September 2020 - Tesla revealed plans to begin phase 3 of its huge VPP in South Australia, confirming that almost 4,000 households will be linked to the system through Powerwalls and solar.

The Report Lists Following Key Companies in the Market:

• ABB (Switzerland)


• Siemens (Germany)


• General Electric (U.S.)


• AGL Energy (Australia)


• Schneider Electric (France)


• Enel X (U.S.)


• Cisco Systems, Inc. (U.S.)


• Bosch (Germany)


• IBM (U.S.)


• Hitachi, Ltd. (Japan)


• Mitsubishi Heavy Industries (Japan)


• Next Kraftwerke (Germany)


• AutoGrid Systems, Inc. (U.S.)


• Blue Pillar, Inc. (U.S.)


• Enbala Power Networks, Inc. (U.S.)

Further Report Findings-

• North America is expected to hold the largest virtual power plant market share during the forecast period due to the increasing number of projects sanctioned in the U.S. and Canada.


• According to segmentation based on end-user, the residential segment is expected to hold the largest market share due to the increasing application of smart meters, smart home appliances, and interoperability with home energy management systems (HEMS).

Table of Segmentation-