Virtual Power Plant Market: Current Analysis and Forecast (2021-2027)

Renewable Energy is penetrating the market and thus more and more consumers are adopting the distributed energy resources (DER). Electricity providers are adopting virtual power plants (VPPs) which help balance renewable generation variability and supply grid resources. VPPs or VPSs are also known as "the internet of energy". With the help of VPP, elements from all the different renewable sources can be accumulated at one single central control centre i.e., VPP.

Currently, the biggest VPP is running in Europe by the Norwegian company Statkraft, and the plant is based in Germany. The output generated by this VPP is over 10,000 MW coming from around 1,400 independent power producers. This includes 1,300 wind farms, 100 solar units as well as bioenergy and hydropower generators.

Based on technology, the virtual power plants market is segmented into Distribution Generation, Demand Response, and Mixed Asset. Amongst technology, the demand response segment of the virtual power plants market was valued at US$ XX billion in 2020 and is likely to reach US$ XX billion by 2027 and is growing at a CAGR of XX% from 2021-2027.

Based on end-user, the virtual power plant market is segmented into Commercial, Industrial, and Residential. Amongst end-user, industrial segment accounted for a market valuation of US$ XX billion in 2020 and is expected to reach US$ XX billion by the year 2027, at a CAGR of XX% over the analysed period.

For a better understanding of the market adoption of Virtual Power Plants Industry, the market is analysed based on its worldwide presence in the countries such as North America (United States, Canada, and the Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific will dominate the Virtual Power Plants market on account of increasing forms on energy production and increasing demand for electricity.

Some of the major players operating in the market include Next Kraftwerke, EnerNOC, Schneider Electric, AGL Energy, Flexitricity, Siemens, Cummins, GE, ABB, and Comverge. Several M&As along with partnerships have been undertaken by these players to boost their presence in different regions.

Virtual Power Plants Market was valued at US$ XX billion in 2020 and is projected to expand significantly with a CAGR of XX% from 2021-2027F to US$ XX billion in 2027. The Virtual Power Plants Market is expected to witness a boost on account of the increasing use of renewable energy