The global market for virtual power plants is expected to be worth $4.5 billion by 2024 according to new market research.
At the moment the US is the dominant market for the technology, however, the Asia-Pacific region is expected to flourish as one of the most lucrative markets for virtual power plants.
The report by BIS Research explains that the market growth will be driven by the growing affinity for reducing the electricity demand, plus the rising concern for sustainable power generation.
Furthermore, the market will be stimulated by governments’ choosing to utilise renewable energy and battery storage systems.
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Battery storage systems
“Distributed generation, demand response, and mixed assets are the major technologies used by the virtual power plant solution providers for grid optimisation and aggregation of distributed energy resources,” states the report.
According to BIS Research, in 2018, demand-response technology-based virtual power plant accounted for more than 60% of the total virtual power plant market.
“During the forecast period [to 2024], mixed assets technology-based virtual power plant is expected to display the highest growth of 33.09% owing to the increasing concerns over the continuous source of power supply for bidirectional flow of electricity,” the report noted.
Demand response accounted for the largest share in the market as a result of the increasing demand for continuous power supply worldwide.
During the forecast period, mixed assets technology-based virtual power plant is expected to display the highest growth owing to the increasing demand for prosumers and bidirectional flow of electricity in the supply chain to meet the electricity demand.
In 2018, North America was at the forefront of the market, with a huge market concentration in the US.
However, during the forecast period, the Asia-Pacific region is expected to flourish as one of the most lucrative markets for virtual power plant.
Rising demand for electricity generation from renewable energy sources and low grid strength drive the growth of the virtual power plant market.
Regions such as South
America and Africa are also expected to exhibit significant growth
opportunities for virtual power plant due to the increased optimism in the
economic conditions in these countries.
For the full report, click here.
Story source: Power Engineering International and edited by ESI Africa