Virtual Power Plant Market Analysis, Share, Growth Drivers and Future Scope

08/apr/2021 07:22:48 P&S Intelligence Contatta l'autore

A virtual power plant (VPP) is a centralized control system that is connected to power generating and transmitting units. Owing to the connection to such units, VPP requires lesser capital and can integrate several distributed energy resources. Due to low capital investments, power deficit countries like India, Nigeria, and Indonesia are increasing their reliance on VPPs. To ensure the development of sustainable and smoothly integrated power systems, such developing countries have escalated their spending on the development of VPPs to create an adequate power infrastructure.

Additionally, the rapid shift from non-renewable energy sources to renewable sources will fuel the growth of virtual power plant market at 18.6% CAGR during 2018–2023. The market stood at $1,975.1 million in 2017 and it is expected to reach $5,510.2 million by 2023. The development of non-conventional power plants will produce a large amount of energy, which will require an advanced power evacuation infrastructure to support the reliable flow of power. This will boost the creation of VPPs, which will ensure the incorporation of newly developed renewable power plants with power evacuation infrastructure.

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When consumer is taken into consideration, the virtual power plant market is classified into electric vehicle, residential, commercial, and industrial. Out of these, the electric vehicle category is predicted to demonstrate the fastest growth in the market in the future years. This will be because of the rising utilization of electric vehicle charging facilities and infrastructure for catering to the requirements for the several electric vehicles running on the roads.

The virtual power plant market will exhibit huge expansion in Europe and North America in the coming years, as per the estimates of P&S Intelligence, a market research company based in India. This will be due to the increasing adoption of renewable power projects, the mushrooming sales of electric vehicles and the rising usage of electric vehicle charging facilities, and the growing demand for a reliable supply of power from various distributed power resources in the regional countries.

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Thus, it can be said with confidence that due to the growing requirement for continuous supply of power and the rising adoption of renewable energy sources for power generation, the demand for virtual power plants will shoot-up across the world in the future years. 

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