Virtual Power Plant Implementation Spending Expected to Reach $2.1 Billion Annually by 2025
Software represents the largest revenue opportunity across all virtual power plant types, while energy storage dominates in the mixed asset segment
A new report from Navigant Research examines the global market for virtual power plants (VPPs) and enabling technologies, providing an analysis of the market issues associated with VPPs, and forecasts for capacity and implementation spending, through 2025.
In a time of greater reliance on distributed energy resources (DER), VPPs represent one strategy helping to manage the increasing prevalence of two-way power flows. This technology relies on software and the smart grid, working remotely and automatically to combine a diversity of independent resources into a network via sophisticated planning, scheduling, and bidding of DER-based services. Click to tweet: According to a new report from @NavigantRSRCH, global VPP implementation spending (excluding energy storage) is expected to reach $2.1 billion annually by 2025.
“The mixed asset VPP has achieved dramatic growth in the last couple of years and is the preferred platform in today’s market, particularly as the role of energy storage grows,” says Peter Asmus, principal research analyst with Navigant Research. “Mixed asset VPPs can also include everything from diesel generators to heat pumps and electric vehicles (EVs), and some are more focused on thermal energy than electricity.”
When it comes to vital enabling technologies to create any type of VPP, software is by far the largest revenue opportunity across all VPP segments, and is expected to reach more than $1.8 billion annually in 2025, according to the report. However, energy storage as an enabling technology dominates overall investment in the total VPP market, and is expected to reach $12.4 billion annually in 2025 in the mixed asset segment.
The report, Virtual Power Plant Enabling Technologies, analyzes the global market for VPPs and enabling technologies in three primary segments: DR, supply-side, and mixed asset. The study provides an analysis of the market issues, including drivers, barriers, and business cases, associated with VPPs. Global market forecasts for capacity and implementation spending, broken out by segment, region, and technology, extend through 2025. Along with the three technology categories (metering and telemetry, device controls, and software), this report sizes the capacity growth of energy storage devices in emerging markets for mixed asset VPPs. The report also examines technology issues related to VPPs, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
+1.303.493.5477
lindsay.funicello.paul@navigant.com
* The information contained in this press release concerning the report, Virtual Power Plant Enabling Technologies, is a summary and reflects Navigant Research’s current expectations 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.