Transactive Energy Market Will Likely Rely on Virtual Power Plant Digital Platforms to Support Growth Over the Coming Decade
Barriers to growth include regulatory inconsistencies, challenges in electric vehicle adoption, and customer behaviors
A new report from Guidehouse Insights examines the core of the virtual power plant (VPP) and transactive energy (TE) platforms and identifies potential revenue streams that could be created through the integration of both.
TE is a power or energy system in which economic- or market-based platforms are used to make decisions involving the generation, distribution, and consumption of power. The concepts of VPPs and TE are similar in that they place prosumers at the forefront of an emerging market for grid services delivered by distributed energy resources (DER). According to a new report from Guidehouse Insights, the transactive energy market will likely rely on virtual power plant digital platforms to support growth over the coming decade.
“The push toward decarbonization by customers and new digital market ecosystems are driving DER and VPP growth,” says Roberto Labastida, senior research analyst with Guidehouse Insights. “These trends in turn are providing a favorable environment for new TE players to enter the market and for existing providers to expand their base.”
Although VPP-based TE could bring many benefits to consumers and the grid, several barriers are slowing this growth. These barriers include regulatory inconsistencies, barriers to EV adoption, and customer behaviors, which may affect different regions and residential customer groups differently.
The report, Transactive Energy Applications for VPP Platforms, examines the core of the VPP and TE platforms and identifies potential revenue streams that could be created through the integration of both. The study analyzes market issues, including demand drivers and barriers, associated with the development of TE markets and business models. Global market forecasts, broken out by segment, technology, and region, extend through 2030. The report also examines the value streams related to TE and provides recommendations for DER owners, network utilities and suppliers, TE vendors, and other stakeholders exploring the emerging TE markets. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Transactive Energy Applications for VPP Plattforms, 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.