Virtual Power Plants (VPP) are part of a growing trend to aggregate intelligence and optimize distributed energy resources (DER) on the energy grid. To do this, VPP’s enable consumers to freely communicate with each other, so they can self-generate, as well as manage supply and demand at their premise level.
A new report from Navigant Research, titled “Market Data: Virtual Power Plants,” analyzes capacity, market revenue, and implementation spending of three primary VPP market segments, providing global market forecasts from 2019 to 2028.
The report found that VPP market revenue from 2019 to 2028 will experience an annual growth rate of 48.6% as consumers become active in the integration of new technologies such as demand response, solar PV systems, advanced batteries, and electric vehicles.
VPPs are part of the transactive energy trend that seeks to establish the value of the grid through customers managing the supply and the demand of energy. The consumer role is becoming more evident with the emergence of plug-in vehicles and their energy needs that are leading to greater use of micro-grids, as reported in prior Navigant research.
“The evolution of energy markets is accelerating toward a greater reliance on DER, whether those resources generate, consume, or store electricity,” says Peter Asmus, research director at Navigant Research in a press statement. “Through VPPs, prosumers can become active participants in delivering services tailored to their own needs and preferences that also serve the larger grid.”
