VPPs’ Market Is on the Growth Path

The recent report from ResearchAndMarkets.com, titled: “Virtual Power Plant (VPP) Market Report 2024-2034” states that the overall world revenue for Virtual Power Plant Market, 2024 to 2034 in terms of value market will surpass US$2.6 billion in 2024…

Virtual Power Plant is basically a network of decentralized electricity generation sources, it may include: wind farms, solar parks and combined heat and power units, which work in coordination with storage systems and flexible energy consumers. Although the sizes and combinations of VPPs may vary, they all target to reduce demand from the grid. They achieve this by supplying the power generated by individual units during peak hours.

The current report predicts a strong revenue growth through to 2034. This analysis has identified which organizations hold the greatest potential. It has discovered their capabilities, progress, and commercial prospects.

The driving force

According to the report, the propulsion of the VPP market stems from several influential factors, with the widespread deployment of Distributed Energy Resources (DERs), encompassing solar PV, wind power, and energy storage systems, standing out as a primary catalyst. A global shift toward cleaner energy sources, supported by governments and industries, encourages the seamless integration of renewable resources into the grid.

Simultaneously, the ongoing liberalization of electricity markets acts as a driving force, fostering demand for innovative solutions like VPPs that provide essential flexibility and adaptability within the ever-evolving energy landscape.

Vulnerability to cyber threats

The vulnerability to cyber threats and potential system failures stands out as a significant restraining factor for the growth of the VPP market. As VPPs rely heavily on digital technologies and interconnected systems, they become susceptible to cyberattacks, which could compromise the integrity and functionality of the entire system.

The interconnected nature of VPPs, designed to enhance efficiency and coordination, also exposes them to the risk of system failures. Any disruptions, whether caused by cyber threats or system failures, can have far-reaching consequences, affecting the reliability and stability of power generation and distribution. As a result, addressing and mitigating these vulnerabilities becomes crucial for
the widespread and secure adoption of VPP technologies.

Market driving factors

  • Ongoing innovation and research fuelling VPP advancements
  • Virtual power plants could be pathway to decarbonization
  • VPPs as platforms for Distributed Energy Resources (DERs)

Market restraining factors

  • Vulnerability to cyber threats and potential system failures rises restraining factor for market growth
  • The substantial upfront costs associated with the deployment of VPP infrastructure, including smart grids and advanced control systems
  • Fluctuations in energy markets, coupled with uncertainties in government policies and incentives

Market opportunities

  • Continued advancements in IoT, AI, and Communication Technologies
  • Countries worldwide recognize the benefits of smart, distributed energy systems
  • Increasing adoption of residential solar, storage, and smart home technologies contributes to the growthof VPPs

Major companies operating in this field

Primarily the list of players dominating the field includes: Siemens AG; ABB Ltd.; Schneider Electric SE; General Electric Company; Next Kraftwerke; Cisco Systems Inc; Enel X; Engie SA; Sunverge Energy Inc.; Spirae Inc.; Tesla, Inc.; Cpower Energy Management; Sympower; Swell Energy Inc.; and LO3 Energy Inc.

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