Global VPP-Enabled Energy Storage Additions Are Expected to Grow at a Compound Annual Growth Rate of 30% Through 2030

Market barriers include cybersecurity risk, regulatory hurdles and costs of deployment

Jun 08, 2022

A new report from Guidehouse Insights explores virtual power plant (VPP) uses in distributed energy storage (DES) markets. 

As the demand for distributed energy resources (DER) deployment increases, so has the need to examine the issues of high costs and renewable energy source intermittency. With the help of VPPs, DES markets can become more robust and reliable. According to a new report from Guidehouse Insights, global VPP-enabled energy storage additions are anticipated to be 3.0 GW by 2030, growing from 288.1 MW in 2021 at a compound annual growth rate (CAGR) of 29.8%.

“As distributed energy markets increasingly become more connected and designed with intelligent management technology, more DER deployments are anticipated to have VPP capabilities at the ready,” says Maria Chavez, research analyst with Guidehouse Insights. “With the help of VPPs, DES markets can become more robust and reliable.”

Residential energy storage customers can enjoy a connected and energy efficient home management system that creates cost savings over time and allows homeowners to take a more active role in their energy consumption and use. Partnerships with utilities and programs that incentivize participation are also making it easier to integrate VPPs into the home. Despite the advantages, barriers to VPPs in these energy storage markets still persist, such as the upfront costs of deployment and aggregation, potential privacy and cybersecurity risks, and regulatory hurdles, according to the report.

The report, VPP Applications for Distributed Energy Storage, explores the different applications for VPPs in energy storage markets and analyses the market size for VPP-enabled energy storage technologies. As this market grows, Guidehouse Insights recommends that leaders in the industry focus on access to VPP programs, standardize systems to be compatible among VPP and storage technologies, and leverage the energy efficiency benefits of VPP-enabled energy storage in order to reach climate goals more ambitiously. An executive summary of the report is available for free download on the Guidehouse Insights website.


Cecile Fradkin

*The information contained in this press release concerning the report, VPP Applications for Distributed Energy Storage, 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.