United States Virtual Power Plant Market
The United States Virtual Power Plant market is gaining momentum as the country shifts towards a more decentralized and renewable energy grid. Virtual power plants in the U.S. aggregate a variety of distributed energy resources (DERs), including residential solar panels, battery storage, electric vehicles, and demand response systems, to create a flexible and reliable power system. This is crucial as the U.S. seeks to reduce greenhouse gas emissions and increase the share of renewable energy in its electricity mix.
Several states, such as California, Texas, and New York, are leading the way in VPP adoption. In California, for instance, virtual power plants are being used to mitigate the impacts of wildfires and extreme weather events on the power grid. By aggregating and controlling distributed energy resources, VPPs can provide grid services such as frequency regulation, voltage support, and peak load reduction, helping to maintain grid stability even during periods of high demand or supply disruptions.
The U.S. VPP market is supported by government policies and incentives aimed at promoting renewable energy and grid modernization. The Federal Energy Regulatory Commission (FERC) Order 2222, which allows distributed energy resources to participate in wholesale electricity markets, is expected to accelerate VPP deployment across the country. However, challenges such as regulatory fragmentation, cybersecurity risks, and the need for advanced software and hardware solutions remain. Despite these challenges, the U.S. VPP market is poised for significant growth in the coming years.
The study documents by MRFR state that the Virtual Power Plants Market Research Report Information by Technology, End Users, and Region - Forecast Till 2032, the Virtual Power Plants market is likely to grow considerably throughout the valuation period from 2022 to 2032 at a notable CAGR of nearly 29.6%.
The research reports provide predictions regarding the global market's rising revenue data, which is anticipated to acquire a market worth of USD 17.64 billion by the end of 2032. The reports also tell that the market will be worth nearly USD 1.94 billion in 2024.
The Virtual Power Plants market has recently advanced. The main feature causing a rise in market performance is the rising share of renewable energy. Furthermore, the shift from centralized to distributed generation is also considered to be one of the vital aspects causing a surge in the performance of the global market. In addition, reducing costs for solar and energy storage is also likely to enhance the growth of the global market over the coming years.
Competitive Analysis
- ABB Ltd.(Switzerland)
- Enabala Power Networks Inc. (Canada)
- Autogrid Systems Inc. (U.S.)
- Enernoc Inc. (U.S.)
- Blue Pillar Inc. (U.S.)
- Flexitricity Limited (U.K.)
- Cisco Systems Inc. (U.S.)
- General Electric Company (U.S.)
- Comverge (U.S.)
- Hitachi Limited (Japan)
- Cpower Energy Management(U.S.)
- Robert Bosch GmbH (Germany)
- Siemens AG(Germany)
- International Business Machines Corporation (U.S.)
- Schneider Electric SE(France)
Market Drivers
The Virtual Power Plants market has recently advanced. The main feature causing a rise in market performance is the rising share of renewable energy. Furthermore, the shift from centralized to distributed generation is also considered to be one of the vital aspects causing a surge in the performance of the global market. In addition, the reduced costs for solar energy and the growing prevalence of renewable energy in power generation and energy storage are also likely to enhance the growth of the global market over the coming years.
Market Restraints
However, several parameters may impede Virtual Power Plants' performance in the global market. One of the main parameters limiting the development of the market is the elevated prices associated with raw materials.
Segment Analysis
The global market for Virtual Power Plants has been segregated into various segments based on Technology, End Users, and Region.
Based on the Technology types, the global market for Virtual Power Plants is divided into mixed asset, demand response, and distribution generation.
Based on the end-users, the global market for Virtual Power Plants is divided into Residential, Industrial, and Commercial.
Regional Analysis
The data reports by MRFR state that The Asia-Pacific Region ensured the primary spot across the Virtual Power Plants market in 2021, with a maximum contribution of around USD 0.08 billion. The regional market is anticipated to showcase a substantial CAGR by 2030. The region has substantial development participants, such as China, India, and Indonesia. The primary parameter causing a surge in the performance of the regional Virtual Power Plants market is the availability of many industry players. Furthermore, factors like growing industrialization and increasing energy demand are also likely to boost the growth of the regional market over the coming years.
The European Region will grow substantially across the Virtual Power Plants market from 2023 to 2032. The region has substantial development participants, such as Germany, France, and the U.K. The primary parameter causing a surge in the performance of the regional Virtual Power Plants market is the government initiatives towards 100% green energy. Furthermore, factors like the availability of many industry players and increasing energy demand are also likely to boost the growth of the regional market over the coming years.
The North American region is estimated to grow at the highest pace across the Virtual Power Plants industry over the assessment period. The region has substantial development participants, such as the U.S., Canada, and Mexico. The primary parameter causing a surge in the performance of the regional Virtual Power Plants market is the rapidly growing energy needs.
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