Capacity for Vehicle-Grid-Integration-Based Virtual Power Plants Is Expected to Scale Tenfold from 2020-2029
Virtual power plant platforms can optimize EV charging and support the discharge of EV batteries to aid the electricity grid during peak demand
A new report from Guidehouse Insights analyzes unidirectional (V1G) and bidirectional (V2G) smart charging applications for grid services, as managed through virtual power plants (VPP) software platforms, providing global market forecasts for capacity, implementation spending, and revenue, through 2029.
The deployment of EVs can cause strain on localized grid infrastructure, particularly as higher numbers of EVs connect to the grid to charge during periods of peak demand. A VPP platform can optimize EV charging and potentially support the discharge of EV batteries to assist the electricity grid during periods of peak demand. Click to tweet: According to a new report from @WeAreGHInsights, in 2020, a total of 261.5 MW is expected to support VGI-based VPPs. This capacity will likely scale more than tenfold to 29.9 GW by 2029.
“The symbiotic relationship between VPP platform solutions and plug-in EV (PEV) adoption has led to an understanding of vehicle grid integration (VGI) as one of the next frontiers in smart device management,” says Jessie Mehrhoff, research analyst with Guidehouse Insights. “VPPs work to achieve the greatest possible profit for distributed energy resources (DER) asset owners while maintaining the proper balance of the electricity grid at the lowest possible economic and environmental cost.”
Over the next decade, a growing portion of VGI capacity is expected to integrate with VPP platforms to provide flexible capacity in response to price signals through 2029. V2G solutions remain a nascent market at the start of the forecast period, and V1G solutions are anticipated to contribute to the bulk of VGI-based VPP capacity over the forecast period, however, Guidehouse Insights expects that V2G-based capacity will grow globally at a compound annual growth rate (CAGR) of 83.1% from 2020-2029.
The report, VPP Applications for Managed EV Charging Platforms, analyzes both V1G and V2G smart charging applications, as managed through VPP software platforms. The study provides an analysis of market trends, including drivers and barriers, and a regional overview of developments in VGI-based VPP deployment. Global market forecasts for capacity, implementation spending, and revenue, broken out by region and customer segment, extend for both V1G- and V2G-based VPPs through 2029. The study also includes case studies to illustrate global R&D of VGI-based VPP solutions. An executive summary of the report is available for free download on the Guidehouse Insights website.
Contact:
Lindsay Funicello-Paul
+1.781.270.8456
lindsay.funicello.paul@guidehouse.com
*The information contained in this press release concerning the report, VPP Applications for Managed EV Charging Platforms, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.