Virtual Power Plant (VPP) market is projected to grow at a CAGR of 21.1% by 2034: Visiongain
This article was originally posted by Yahoo Finance on 5th January 2024.Visiongain has published a new report entitled Virtual Power Plant (VPP) Market Report 2024-2034: Forecasts by Component (Software, Hardware), by Technology (Demand Response VPP, Distributed Generation VPP, Mixed Asset VPP), by End-user (Residential, Commercial, Industrial, Utility), by Generation Source (Solar PV, Wind Power, Combined Heat and Power (CHP) Units, Energy Storage Systems, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies AND COVID-19 Impact and Recovery Pattern Analysis.
he global virtual power plant (VPP) market was valued at US$2,186.6 million in 2023 and is projected to grow at a CAGR of 21.1% during the forecast period 2024-2034.
Demand for Decentralized Power Generation and Energy Independence
The demand for decentralized power generation and energy independence propels the global VPP market. VPPs empower consumers to generate, store, and manage their energy locally, fostering a more resilient and self-sufficient energy ecosystem. In Australia, the Decentralized Energy Exchange (deX) exemplifies how VPPs enable decentralized power generation, offering consumers greater control over their energy production and consumption.
Grid modernization initiatives and the integration of smart grid technologies drive the global VPP market. VPPs actively participate in modernizing grids by incorporating advanced communication and control systems. The Pacific Gas and Electric Company's collaboration with Sunrun illustrates how VPPs contribute to smart grid integration, enabling real-time communication between distributed energy resources and the utility for enhanced grid management.
cant negative impact on the Virtual Power Plant (VPP) Market?
The COVID-19 pandemic has significantly impacted the Virtual Power Plant (VPP) market, introducing challenges and opportunities that have reshaped the energy landscape. One of the immediate effects was a slowdown in the deployment of new VPP projects due to disruptions in the supply chain, workforce shortages, and delays in project financing. Lockdowns and restrictions hindered on-site installations and commissioning, leading to project postponements across the globe. Uncertainties in economic conditions further restrained investments in energy infrastructure, affecting the growth trajectory of the VPP market.
