2Q 2020

Virtual Power Plant Overview

Flexibility Market Analysis and Forecasts: 2020-2029

Rapid development of distributed energy resources (DER) technologies and accompanying software along with evolving grid pain points are driving the growing need for flexible capacity in 2020. Legacy demand response (DR) programs are evolving from manual direct load control switch programs, beyond the more recent bring your own thermostat framework and toward that of bring your own device (BYOD). This new framework embraces a swath of behind-the-meter (BTM) DER technologies found across customer segments.

Simultaneously, flexible capacity from BTM and in front of the meter is being optimized to contribute to broader grid reliability and optimize participating devices to provide the same essential purposes as a traditional 24/7 power plant. Through this virtual power plant (VPP) strategy, passive energy consumers can be transformed into active prosumers, delivering services tailored to their needs and preferences and those of the larger grid.

This Guidehouse Insights report analyzes the global market for flexible capacity in two key segments: demand response (DR) and virtual power plants (VPPs). The study provides an analysis of the market issues associated with DR and VPPs. Regional overviews provide telling developments in the five global regions analyzed by Guidehouse Insights: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Global market forecasts for capacity, spending, and revenue are broken out by region. VPP forecasts are also broken out by VPP model type, including DR-based, supply-side, and mixed asset. All forecasts extend through 2029. The report also examines the key technologies differentiating VPPs from DR and other forms of flexible capacity.

Pages 88
Tables | Charts | Figures 31
  • What are the primary applications of VPPs?
  • How are VPPs distinct from other smart grid platforms?
  • How will traditional DR programs grow alongside VPPs?
  • What are the trends driving the need for flexible capacity?
  • What are the market conditions necessary to implement VPPs?
  • Where are nascent markets emerging?
  • Who are the key industry players in the broader flexible capacity market?
  • Grid operators
  • Utilities
  • DER vendors
  • DER systems Integrators
  • VPP platform providers
  • Flexible capacity aggregators
  • Utility software vendors
  • Demand side management associations
  • Investor community

1. Executive Summary

1.1   Introduction

1.2   Market Trends

1.3   Technology Issues

1.4   Market Forecast

2. Market Issues

2.1   VPP Market Definition

2.2   Market Drivers

2.2.1   Growing Renewable Energy Penetration

2.2.2   DR as a Tool for DER Integration

2.2.3   Market Opening

2.2.4   Neural Grid Development

2.2.5   Partnership Opportunities

2.2.6   Climate Change and Sustainability Targets

2.2.6.1   Climate Change Targets

2.2.6.2   Corporate Sustainability and Social Responsibility

2.2.7   Strategic Electrification

2.3   Market Barriers

2.3.1   COVID-19

2.3.2   Regulatory Requirements and Landscape

2.3.2.1   Regional Variations

2.3.2.2   Slow Pace of Regulatory Change

2.3.3   DER Standards, Certifications, and Property Rights

2.3.4   Data Privacy and Cybersecurity

2.3.5   Integrated DER Program Scale

2.3.6   Grid Independence Movement

2.4   Regional Overview

2.4.1   North America

2.4.1.1   US

2.4.1.2   Canada

2.4.2   Europe

2.4.2.1   France

2.4.2.2   Germany

2.4.2.3   UK

2.4.3   Asia Pacific

2.4.3.1   Australia

2.4.3.2   Japan

2.4.3.3   South Korea

2.4.4   Latin America

2.4.5   Middle East & Africa

2.4.5.1   United Arab Emirates

3. Technology Issues

3.1   Technology Characterization

3.1.1   EVs and Charging Stations

3.1.2   Solar Plus Storage Systems

3.2   VPP Technology Use Cases

4. Key Industry Players

4.1   DSM Players

4.1.1   Aquanta

4.1.2   Honeywell

4.1.3   Itron

4.1.4   Landis+Gyr

4.1.5   Oracle

4.1.6   Uplight

4.2   VPP Platform Providers

4.2.1   ABB

4.2.2   AMS

4.2.3   AutoGrid

4.2.4   Centrica Business Solutions

4.2.5   Enbala

4.2.6   Enel X

4.2.7   GreenSync

4.2.8   GridIO

4.2.9   KiWi Power

4.2.10   LichtBlick

4.2.11   Limejump

4.2.12   Moixa

4.2.13   Next Kraftwerke

4.2.14   Siemens

4.2.15   Sunverge Energy

4.2.16   tiko Energy Solutions AG

5. Market Forecasts

5.1   Forecast Introduction

5.2   Assumptions and Methodology

5.3   Report Scope and Market Sizing

5.4   DR

5.4.1   DR Capacity

5.4.2   DR Spending

5.4.3   DR Revenue

5.4.4   DR Sites

5.5   VPP

5.5.1   VPP Capacity

5.5.2   VPP Spend

5.5.3   VPP Revenue

5.6   Conclusions and Recommendations

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

  • Flexible Capacity and Revenue by Technology, World Markets: 2020-2029
  • DR Capacity by Region, World Markets: 2020-2029
  • DR Spending by Region, World Markets: 2020-2029
  • DR Revenue by Region, World Markets: 2020-2029
  • DR Sites by Region, World Markets: 2020-2029
  • VPP Capacity by Region, World Markets:2020-2029
  • VPP Market Share by Technology, World Markets: 2020
  • VPP Market Share by Technology, World Markets: 2029
  • VPP Implementation Spending by Region, World Markets: 2020-2029
  • VPP Implementation Spending by Technology, World Markets: 2020-2029
  • VPP Revenue by Region, World Markets: 2020-2029
  • VPP Revenue by Technology, World Markets: 2020-2029
  • VPP Capacity by Technology, World Markets: 2020-2029
  • Value-Add Generated by VPP Platform Evolution
  • VPP Distinctions for DERMS and DR Management Systems
  • Transition from Smart Grid to Neural Grid
  • Cost Differentiation Between Fossil Fuel Generation and VPP for LADWP
  • Map of Japan’s Two Frequency Power Grid
  • VPP Platform Schematic
  • Residential Solar PV plus Energy Storage VPPs
  • VPP Value Streams
  • DR Capacity by Region, World Markets: 2020-2029
  • DR Spending by Region, World Markets: 2020-2029
  • DR Revenue by Region, World Markets: 2020-2029
  • DR Sites by Region, World Markets: 2020-2029
  • Total VPP Capacity by Region, World Markets: 2020-2029
  • Total VPP Implementation Spending by Region, World Markets: 2020-2029
  • Total VPP Revenue by Region, World Markets: 2020-2029
  • VPP Capacity by Technology, World Markets: 2020-2029
  • VPP Implementation Spend by Technology, World Markets: 2020-2029
  • VPP Revenue by Technology, World Markets: 2020-2020
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