Digital power plant, a decentralized power station containing integrated electricity networks to combine multiple energy sources such as solar photovoltaic, wind turbine and hydro power stations; In addition, virtual power plant generates an effective supply of electricity, even at high load periods, with an ability to buy or export capacity on the stock market. Digital power generation is a medium-sized unit that incorporates various clean energy supply schemes and users of solar, wind and other electricity and storage systems. A virtual power plant consists of multiple mixed properties, linked to a wide variety of information, such as current electricity market rates, demand and weather forecasts, and network operator grid information.
In regions globally, different factors drive the growth of the virtual power plant industry. The key contributing factor to the growth of the market is the growing demand for electricity through a stable energy source. The automated plant leads to electricity consumption cycles in order to conserve resources in energy storage devices and batteries. The rising government's regulations and consumer loyalty policies and reward schemes may also be an incremental boost for the end-user market. The automated plant leads to electricity consumption cycles in order to conserve resources in energy storage devices and batteries. Over the forecast period, phenomenal growth in the construction industry alone in Asia-Pacific is expected to fuel the overall demand for virtual power plants.
Virtual power plant are expected to affect the implementation of the virtual power plant in the Indian electric sector through a range of functions including distributed asset tracking, asset optimization, distributed asset regulation, clean energy management , energy storage management , power charging and demand response management. In the adoption process, preferred government laws and legislation would most undoubtedly play a significant role. The Government's vehicle electrification policy will require the development of an electrical charge infrastructure within the framework of a Faster Adoption and Manufacture of electric vehicles (FAME) and the National Electrical Mobility Mission Plan (NEMMP). Implementing virtual power plant will lead to the effective operation of charge stations around the country and to load control at each charge station. In fact, it would be feasible with the use of virtual power plant to effectively enforce five minute preparation policies.
Fundamentals Governing Virtual Power Plant Market
Continuing innovation in the development of new VPPs is a big phenomenon on the virtual power plant market. Conventional power stations need tremendous construction and management resources. In comparison, a virtual power plant is a centralized control network linked to power generation and transmission unit, which means fewer infrastructures, is needed and specific dispersed energy systems can be installed into it. Significant investments have been confirmed by global companies, including Tesla Inc., with the introduction of virtual power plant. Renewable energy demand increases faster than fossil fuels. The share of the global energy supply of renewable energies is expected to hit 20% by the end of 2035, compared to 7% in 2015. In order to sustain its efficient output, renewable energy ventures must produce a significant quantity of energy requiring a built power evacuation infrastructure. This will speed up the establishment of virtual power plant to ensure the alignment with the power evacuation network of newer solar ventures, thus pushing the demand of the virtual power plant.
The largest share in the virtual power plant industry is anticipated in North America over the projected period. The technology and technical growth of North America is advanced. Renewable energy consumption would drive market growth by increasing solar photovoltaic costs, reducing the carbon footprint and battery energy and shifting from centralized to distribution. However, the fastest growth rates in the projected period are expected in the Asia-Pacific due to numerous measures taken to reduce the carbon footprint and produce clean energy like green energy including hydro, solar power and wind power generation in the largest market for the manufacturing sector and the infrastructure sector.
Major players included in this report are ABB Ltd., AutoGrid Systems, Inc., AGL Energy, Enel X Inc., General Electric Company, Siemens AG, Limejump Ltd., Enbala Power Networks, Schneider Electric SE, and others. Owing to strict advances in the power sector and rising customer desires for uninterrupted power supply, the industry is expected to advance tremendously in technology over the forecast era. There are also high expectations that multinationals and established companies will be expanding on the market. Over the forecast period, fusions and acquisitions are expected to occur.
The global virtual power plant market is segmented as below:
Virtual Power Plant Market By Technology
Virtual Power Plant Market By End User
Virtual Power Plant Market By Geography
Middle East & Africa
The market value of virtual power plant is anticipated to be around US$ 800 Bn in 2027.
It is anticipated to grow around 20% CAGR amid the forecast period.2020-2027
North America held maximum share in 2019.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.
Increasing share of renewable energy in the power generation mix is expected to drive the growth of the virtual power plant market.
Health safety concerns regarding electromagnetic frequency (EMF) & radio frequency (RF) exposure is a major factor expected to restraint the growth of the market.
ABB Ltd., AutoGrid Systems, Inc., AGL Energy, Enel X Inc., General Electric Company, Siemens AG, Limejump Ltd., Enbala Power Networks, Schneider Electric SE, and others are the prominent players in the market.