Mixed-Asset Virtual Power Plant Capacity Is Expected to Experience a 33% Compound Annual Growth Rate from 2020-2029
Market drivers include policy initiatives, increased DER penetration, and falling energy storage prices
A new report from Guidehouse Insights analyzes the global market for mixed-asset virtual power plants (VPPs), providing global forecasts for capacity, implementation spending, and revenue by customer segment, through 2029.
The primary goal of a VPP is 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. Mixed-asset VPPs, which are becoming increasingly common, bring together optimized generation, load, and energy storage to provide a synergistic sharing of grid resources. Click to tweet: According to a new report from @WeAreGHInsights, mixed-asset VPP cumulative capacity is expected to grow from 2.8 GW in 2020 to nearly 36.9 GW by 2029 at a compound annual growth rate (CAGR) of 33.1%.
“Mixed-asset VPP capacity makes up 51% of capacity market share in 2020 and is forecast to scale to 83% of VPP capacity share by 2029,” says Jessie Mehrhoff, research analyst with Guidehouse Insights. “Flexible capacity aggregation is evolving from siloed aggregation of automated demand response load and renewable generation resources toward broader ecosystem orchestration, thus favoring the mixed-asset VPP model.”
According to the report, market drivers include the growth of DER penetration, falling energy storage prices, the Federal Energy Regulatory Commission (FERC) Oder 841, and Europe’s COVID-19 stimulus packages and the Green Deal. Partnerships, strategic investments, and acquisitions are also promoting growth, while system costs, utility investment cycles, and solution ambiguity and overlap continue to be barriers to further development.
The report, Market Data: Mixed Asset Virtual Power Plant Models, analyzes the global market for mixed-asset VPPs across five major global regions from 2020-2029. Global forecasts cover capacity, implementation spending, and revenue and are broken out by customer segment. Included market snapshots illustrate the predominant technologies comprising mixed-asset VPPs in 2020. The study provides an analysis of the market issues, including drivers of and barriers to mixed-asset VPP market growth. 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, Market Data: Mixed Asset Virtual Power Plant Models, 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.