- What are key applications for VPP-enabled energy storage?
- What developments are different stakeholders making to advance VPP technology?
- What should key industry players do to improve competitiveness?
- What is the market size for VPP-enabled energy storage?
- What are some recommendations for industry leaders advancing VPPs and energy storage technologies?
- Who are some of the leading stakeholders influencing VPP markets?
2Q 2022
VPP Applications for Distributed Energy Storage
Exploring Virtual Power Plant Uses in Energy Storage Markets
As the demand for distributed energy resources deployment increases, so has the need to examine the issues of high costs and renewable energy source intermittency. Energy storage technologies have been able to overcome many of these pitfalls, but costs remain high, and energy consumers continue demanding more efficiency and cost savings. Virtual power plants (VPPs) can help address these barriers.
With the help of VPPs, distributed energy storage (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 enabling easier integration of VPPs into the home. Using VPPs, commercial and industrial storage markets can also add value to their assets, including cost savings, ambitious sustainability goals, and increased facility operations reliability. Despite the advantages, barriers to VPPs in these energy storage markets persist, in the upfront costs of deployment and aggregation, potential privacy and cybersecurity risks, and regulatory hurdles.
This Guidehouse Insights report explores the different applications for VPPs in energy storage markets and analyses the market size for VPP-enabled energy storage technologies. Guidehouse Insights expects global VPP-enabled energy storage additions to be 3.0 GW by 2030, growing from 288.1 MW in 2021 at a compound annual growth rate of 29.8%. 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.
Pages
32
Tables | Charts | Figures
17
Key Questions Addressed
Who Needs This Report
- Energy storage manufacturers
- Battery storage manufacturers
- Energy storage developers
- VPP vendors
- Utilities
- Software as a Service Providers
Table Of Contents
1. Executive Summary
1.1 Introduction
1.2 Market Forecasts
2. Market Issues
2.1 Market Drivers
2.1.1 Growing Renewable Energy Penetration
2.1.2 Declining Costs Through Efficient Energy Storage Systems
2.1.3 Incentives of Utility Program Participation
2.1.4 CO2 Reductions and Sustainability Targets
2.2 Market Barriers
2.2.1 Cybersecurity Risks
2.2.2 Regulatory Hurdles for Energy Consumers
2.2.2.1 Regional Variations
2.2.2.2 Slow Pace of Regulatory Change
2.2.3 High Upfront Installation and Aggregation Costs
2.2.4 Competition with Islanding Microgrids
3. Technology Issues
3.1 Smart Home Management
3.2 Demand Charge Management and TOU
3.3 Capacity Markets
4. Key Industry Players
4.1 VPP Platform Providers
4.1.1 AutoGrid Systems
4.1.2 Generac Grid Services LLC
4.1.3 Enel X
4.1.4 Moixa
4.1.5 Next Kraftwerke
4.1.6 Siemens
4.1.7 Sunverge Energy
5. Market Forecasts
5.1 Introduction and Methodology
5.2 VPP-Enabled DES Forecasts
5.2.1 VPP-enabled Energy Storage by Customer Segment
5.3 Market Share of VPP-Enabled Energy Storage
6. Conclusions and Recommendations
6.1 Expand Access to Affordable Program Participation
6.2 Leverage Storage Plus VPPs to Meet Objectives
6.3 Prioritize Standardization and Easy DER Integration
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Annual Installed VPP-Enabled DES Power Capacity Additions by Region, World Markets: 2021-2030
- Annual Installed VPP-Enabled DES Revenue by Region, World Markets: 2021-2030
- Annual Installed VPP-Enabled DES Power Capacity Additions by Customer Segment, World Markets: 2021-2030
- Annual Installed DES Power Capacity Additions by Region, World Markets: 2021-2030
- Share of VPP-Enabled DES Capacity in 2030
- Virtual Power Plant Diagram
- ESG Visualization
- VPP-Enabled Home Diagram
- Smart
Management for Demand Charges
List of Tables
- Annual Installed DES Power Capacity Additions by Region, World Markets: 2021-2030
- Annual Installed DES Vendor Revenue by Region, World Markets: 2021-2030
- Total VPP Capacity by Region, World Markets: 2021-2030
- Total VPP Revenue by Region, World Markets: 2020-2029
- Annual Installed VPP-Enabled DES Power Capacity Additions by Region, World Markets: 2021-2030
- Annual Installed VPP-Enabled DES Power Capacity Additions by Customer Segment, World Markets: 2021-2030
- Annual Installed VPP-Enabled DES Revenue by Region, World Markets: 2021-2030
- Annual
Installed VPP-Enabled DES Revenue by Customer Segment, World Markets: 2021-2030
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