Global Virtual Power Plant Market Overview

Virtual power plant reduces the load on the grid by smartly distributing the power generated by the power generating units during periods of peak load.

The combined power generation and consumption of the networked units in the Virtual Power Plant is traded on the energy exchange. It is a network of decentralized power generating units such as Combined Heat and Power (CHP) units, wind farms, solar parks, small hydro, biomass as well as flexible power consumers and batteries. Furthermore, power traders within a virtual power plant are capable to develop live data to increase estimating and trading of renewable energies.

Germany is a leading country in the implementation of VPPs, such as the one operated by Next Kraftwerke, which networks around 4,800 medium- and small-scale power-producing and power-consuming units in central Europe.

The global virtual power plant market size was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period.

Global Virtual Power Plant Market Value (USD Million), 2018-2026

Global Virtual Power Plant Market Dynamics

With the changing dynamics of power grids from centralized to distributed, and decreasing costs of solar generation & energy storage is driving the growth of the virtual power plant market worldwide.

Rising clean energy demand and continuous government support towards generating power from renewable energy are also the key factors impacting market growth. For instance, as per the International Energy Agency (IEA) report, Global electricity demand in 2018 increased by 4%, or 900 TWh, growing nearly twice as fast as the overall demand for energy. Renewable energy increased by 4% in 2018, accounting for almost one-quarter of global energy demand growth. Renewables covered almost 45% of the world's electricity generation growth, now accounting for over 25% of global power output.

However, health concerns over high-frequency human exposure of electromagnetic and radio waves hamper the potential of the market for different end-users. Further, with low consumer awareness and extra capital costs needed to control systems and software is another factor restraining the market participants from investing in this technology.

Global Virtual Power Plant Market Segment Analysis

Global virtual power plant market is segmented based on the type of technology, end-user and its system types.

Based on the technology type, the virtual power plant market is divided into distribution generation, demand response, and internet of things (IoT). The global virtual power plant market size by technology was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. Internet of things (IoT) is expected to grow with a high CAGR rate in the forecast period. Internet of Things in smart grid technology improving two-way communications between utility companies and its customers.

IoT would enable access to the real-time data of both parties to make cost-effective and environment friendlier decisions related to power production and consumption. For instance, On April 25, 2019, Toshiba has Launched Virtual Power Plant Solution Using AI and IoT. Furthermore, In July 2016, Japanese government-funded an experiment, where 14 major companies operating in the domestic power segment integrated power developed from renewables into the power grid through the Internet of Things (IoT). This experimental project focused on creating new energy management systems with the installation of new devices to ensure more efficient energy use.

Global Virtual Power Plant Market Share, By Technology, 2018 (%)

Based on the end-user type, the virtual power plant market is segmented into commercial, residential and industrial. The global virtual power plant market size by end-user was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period.  Commercial segment is further classified into power trading and generation companies, educational institutions, and, hospitals. Commercial segment is expected to dominate the major share owing to rising demand for electricity in the remote locations, along with the need for reliable backup power systems, and growing applications of distributed power generated at the site or near the point of use.

These are systems having less than 100 MW of generation capacity, supplying power to small commercial and industrial sites, often as part of combined heat and power (CHP) projects and microgrid installations. For instance, In November 2018, In Queensland, Australia, The NSW government unveiled plans to turn hospitals and schools into mini power plants using solar panels and batteries in a bid to cut participating buildings' electricity costs by up to USD 40,000 per year. The government has planned to spend USD 20 million to install up to 900 smart batteries on government buildings to create a 13-megawatt virtual power plant.

Based on the system type, the virtual power plant market is divided into centralized controlled virtual power plant (VPP) and decentralized controlled virtual power plant.

 

Global Virtual Power Plant Market Geographical Analysis

Geographically, the global virtual power plant market is segmented to five regions, namely, North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

The Europe virtual power plant market size was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. This region is expected to grow with a high CAGR rate over the forecast period 2019-2026.  Rising demand for decentralized energy sources often arising from small and medium-sized enterprises is playing an important role in the market growth in this region.

Moreover, existing participants such as RWE and E.ON are developing new business models for energy utilities that focus on decentralized renewable energy rather than on centralized conventional fossil fuels or nuclear power. For instance, In August 2016, Brussels-based Next Kraftwerke Belgium has successfully provided primary control reserve (R1) to transmission system operator Elia by networking the power generation of many small renewable generators. With its Virtual Power Plant (VPP). Furthermore, it has brought a new concept to Belgium and is the first company in Belgium to provide primary reserve control on lower voltage levels.

 

Global Virtual Power Plant Market Share (%), By Geography, 2018

The Asia Pacific virtual power plant market size was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. This region is expected to hold a high market share in the forecast period 2019-2026. Increasing demand for management of distributed energy and rising investments are the major factors driving the market growth. For instance, 1,760-megawatt CCGT power plant and ancillary infrastructure in Cilamaya, Karawang, West Java, Indonesia was funded by Asian Development Bank as a direct loan of USD 185 million, and a parallel loan of USD 120 million.

Moreover, Governments initiatives in building virtual power plant are the other key driving factor in this region. For instance, In February 2018, South Australia government and Tesla have collaborated to build the world’s largest virtual power plant with an installed capacity planned for 50,000 homes across the state over the next four years.

Global Virtual Power Plant Market Competitive Analysis:

Global virtual power plant market players are experiencing high competition within the industry as key market players have adopted acquisitions as their key strategy to widen their brand portfolios and expand their market reach.

Some of the key players in the market are ABB, Siemens AG, Sunverge Energy Inc, AutoGrid Systems, Inc, Advanced MicroGrid Solutions, Inc, ENGIE Storage Services NA LLC, Spirae, LLC, Sonnen, Enbala technologies and Next Kraftwerke.

In June 2019, Next Kraftwerke, a power plant operator without any power plants has announced that they digitally bundled more than 7,500 renewable power units with a capacity totaling almost 7,000 megawatts into one of Europe’s largest virtual power plants (VPP) hat balances renewable power sources with commercial and industrial consumers in Germany and neighboring countries.

In February 2019, Shell acquired Limejump one of the digital energy platform operating in the virtual power plant unit. This acquisition will support Shell initiatives of moving beside the oil industry and revolutionize the energy industry.

In February 2019, Shell has acquired German-based home energy-storage start-up Sonnen for an undisclosed sum.

 

Why Purchase the Report?

  • Visualize the composition of the global virtual power plant in terms of various types of technologies, system types and their end-users highlighting the key commercial assets and players.
  • Identify commercial opportunities in global virtual power plant market by analyzing trends and co-development deals.
  • Excel data sheet with thousands of data points of global virtual power plant market - level 4/5 segmentation.
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  • Product mapping in excel for the key product of all major market players

Target Audience

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  • Research Professionals
  • Emerging Companies
  • Manufacturers

Global Virtual Power Plant Market

  1. Global Virtual Power Plant Market Methodology and Scope

    1. Research Methodology

    2. Research Objective and Scope of the Report

  2. Global Virtual Power Plant Market – Market Definition and Overview

  3. Global Virtual Power Plant Market – Executive Summary

    1. Market Snippet by Technology

    2. Market Snippet by End User

    3. Market Snippet by Systems Type

    4. Market Snippet by Region

  4. Global Virtual Power Plant Market Dynamics

    1. Market Impacting Factors

      1. Drivers

        1. Rising clean energy demand

        2. Government support towards generating power from renewable energy

      2. Restraints

        1. Health concerns over high-frequency

        2. Huge capital required

      3. Opportunity

      4. Impact Analysis

  5. Global Virtual Power Plant Market – Industry Analysis

    1. Porter's Five Forces Analysis

    2. Regulatory Analysis

    3. Supply Chain Analysis

    4. Pricing Analysis

  6. Global Virtual Power Plant Market – By Technology

    1. Introduction

      1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology

      2. Market Attractiveness Index, By Technology

    2. Demand Response

    3. Distribution Generation

    4. Internet of Things (IoT)

  7. Global Virtual Power Plant Market – By End Users

    1. Introduction

      1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By End Users

      2. Market Attractiveness Index, By End Users

    2. Residential*

      1. Introduction

      2. Market Size Analysis, USD Million, 2016-2025 and Y-o-Y Growth Analysis (%), 2018-2026

    3. Commercial

      1. Power Trading and Generation Companies

      2. Educational Institutions

      3. Hospitals

    4. Industrial

  8. Global Virtual Power Plant Market – By System Type

    1. Introduction

      1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By System Type

      2. Market Attractiveness Index, By System Type

    2. Centralized Controlled Virtual Power Plant (VPP)*

      1. Introduction

      2. Market Size Analysis, USD Million, 2016-2025 and Y-o-Y Growth Analysis (%), 2018-2026

    3. Decentralized Controlled Virtual Power Plant (VPP)

  9. Global Virtual Power Plant Market - By Region

    1. Introduction

      1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Region

      2. Market Attractiveness Index, By Region

    2. North America

      1. Introduction

      2. Key Region-Specific Dynamics

      3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology

      4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By End User

      5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By System Type

      6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country

        1. U.S.

        2. Canada

        3. Mexico

    3. Europe

      1. Introduction

      2. Key Region-Specific Dynamics

      3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology

      4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By End User

      5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By System Type

      6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country

        1. Germany

        2. U.K.

        3. France

        4. Italy

        5. Spain

        6. Rest of Europe

    4. South America

      1. Introduction

      2. Key Region-Specific Dynamics

      3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology

      4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By End User

      5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By System Type

      6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country

        1. Brazil

        2. Argentina

        3. Rest of South America

    5. Asia Pacific

      1. Introduction

      2. Key Region-Specific Dynamics

      3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology

      4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By End User

      5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By System Type

      6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country

        1. China

        2. India

        3. Japan

        4. Australia

        5. Rest of Asia Pacific

    6. Middle East and Africa

      1. Introduction

      2. Key Region-Specific Dynamics

      3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology

      4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By End User

      5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By System Type

  10. Global Virtual Power Plant Market Competitive Landscape

    1. Competitive Scenario

    2. Market Positioning/Share Analysis

    3. Mergers and Acquisitions Analysis

  11. Global Virtual Power Plant Market Company Profiles

    1. ABB*

      1. Company Overview

      2. Product Portfolio and Description

      3. Key Highlights

      4. Financial Overview

    2. Siemens AG

    3. Sunverge Energy Inc

    4. AutoGrid Systems, Inc

    5. Advanced MicroGrid Solutions, Inc

    6. ENGIE Storage Services NA LLC

    7. Spirae, LLC

    8. Sonnen

    9. Enbala technologies

    10. Next Kraftwerke

  12. Global Virtual Power Plant Market – DataM

    1. Appendix

    2. About Us and Services

    3. Contact Us

LIST OF TABLES:

Table 1        Global Virtual Power Plant Market Value, By Technology, 2018,2022 & 2026 ($ Million)

Table 2        Global Virtual Power Plant Market Value, By End User, 2018,2022 & 2026 ($ Million)

Table 3        Global Virtual Power Plant Market Value, By System Type, 2018,2022 & 2026 ($ Million)

Table 4        Global Virtual Power Plant Market Value, By Region, 2018,2022 & 2026 ($ Million)

Table 5        Global Virtual Power Plant Market Value, By Technology, 2018,2022 & 2026 ($ Million)

Table 6        Global Virtual Power Plant Market Value, By Technology, 2017-2026 ($ Million)

Table 7        Global Virtual Power Plant Market Value, By End User, 2018,2022 & 2026 ($ Million)

Table 8       Global Virtual Power Plant Market Value, By End User, 2017-2026 ($ Million)

Table 9        Global Virtual Power Plant Market Value, By System Type, 2018,2022 & 2026 ($ Million)

Table 10      Global Virtual Power Plant Market Value, By System Type, 2017-2026 ($ Million)

Table 11      Global Virtual Power Plant Market Value, By Region, 2018,2022 & 2026 ($ Million)

Table 12      Global Virtual Power Plant Market Value, By Region, 2017-2026 ($ Million)

Table 13      North America Virtual Power Plant Market Value, By Technology, 2017-2026 ($ Million)

Table 14      North America Virtual Power Plant Market Value, By End User, 2017-2026 ($ Million)

Table 15      North America Virtual Power Plant Market Value, By System Type, 2017-2026 ($ Million)

Table 16      North America Virtual Power Plant Market Value, By Country, 2017-2026 ($ Million)

Table 17      South America Virtual Power Plant Market Value, By Technology, 2017-2026 ($ Million)

Table 18      South America Virtual Power Plant Market Value, By End User, 2017-2026 ($ Million)

Table 19      South America Virtual Power Plant Market Value, By System Type, 2017-2026 ($ Million)

Table 20     South America Virtual Power Plant Market Value, By Country, 2017-2026 ($ Million)

Table 21      Europe Virtual Power Plant Market Value, By Technology, 2017-2026 ($ Million)

Table 22      Europe Virtual Power Plant Market Value, By End User, 2017-2026 ($ Million)

Table 23      Europe Virtual Power Plant Market Value, By System Type, 2017-2026 ($ Million)

Table 24      Europe Virtual Power Plant Market Value, By Country, 2017-2026 ($ Million)

Table 25      Asia-Pacific Virtual Power Plant Market Value, By Technology, 2017-2026 ($ Million)

Table 26      Asia-Pacific Virtual Power Plant Market Value, By End User, 2017-2026 ($ Million)

Table 27      Asia-Pacific Virtual Power Plant Market Value, By System Type, 2017-2026 ($ Million)

Table 28     Asia-Pacific Virtual Power Plant Market Value, By Country, 2017-2026 ($ Million)

Table 29      Middle East & Africa Virtual Power Plant Market Value, By Technology, 2017-2026 ($ Million)

Table 30     Middle East & Africa Virtual Power Plant Market Value, By End User, 2017-2026 ($ Million)

Table 31      Middle East & Africa Virtual Power Plant Market Value, By System Type, 2017-2026 ($ Million)

Table 32      ABB: Overview

Table 33      ABB: Product Portfolio

Table 34      ABB: Key Developments

Table 35      Siemens AG: Overview

Table 36      Siemens AG: Product Portfolio

Table 37      Siemens AG: Key Developments

Table 38     Sunverge Energy Inc: Overview

Table 39      Sunverge Energy Inc: Product Portfolio

Table 40     Sunverge Energy Inc: Key Developments

Table 41      AutoGrid Systems, Inc: Overview

Table 42      AutoGrid Systems, Inc: Product Portfolio

Table 43      AutoGrid Systems, Inc: Key Developments

Table 44      Advanced MicroGrid Solutions, Inc: Overview

Table 45      Advanced MicroGrid Solutions, Inc: Product Portfolio

Table 46      Advanced MicroGrid Solutions, Inc: Key Developments

Table 47      ENGIE Storage Services NA LLC: Overview

Table 48     ENGIE Storage Services NA LLC: Product Portfolio

Table 49      ENGIE Storage Services NA LLC: Key Developments

Table 50      Spirae, LLC: Overview

Table 51      Spirae, LLC: Product Portfolio

Table 52      Spirae, LLC: Key Developments

Table 53      Sonnen: Overview

Table 54      Sonnen: Product Portfolio

Table 55      Sonnen: Key Developments

Table 56      Enbala technologies: Overview

Table 57      Enbala technologies: Product Portfolio

Table 58      Enbala technologies: Key Developments

Table 59      Next Kraftwerke: Overview

Table 60     Next Kraftwerke: Product Portfolio

Table 61      Next Kraftwerke: Key Developments

 

 

LIST OF FIGURES:

Figure 1      Global Virtual Power Plant Market Share, By Technology, 2018 & 2026 (%)

Figure 2      Global Virtual Power Plant Market Share, By End User, 2018 & 2026 (%)

Figure 3      Global Virtual Power Plant Market Share, By System Type, 2018 & 2026 (%)

Figure 4      Global Virtual Power Plant Market Share, By Region, 2018 & 2026 (%)

Figure 5      Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 6      Global Virtual Power Plant Market Y-o-Y Growth, By Technology, 2018-2026 (%)

Figure 7      Demand Response: Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 8      Distribution Generation: Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 9      Internet of Things (IoT): Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 10    Global Virtual Power Plant Market Y-o-Y Growth, By End User, 2018-2026 (%)

Figure 11     Reidential: Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 12    Commercial: Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 13    Industrial: Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 14    Global Virtual Power Plant Market Y-o-Y Growth, By System Type, 2018-2026 (%)

Figure 15    Decentralized Controlled Virtual Power Plant (VPP): Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 16    Centralized Controlled Virtual Power Plant (VPP): Global Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 17    Global Virtual Power Plant Market Y-o-Y Growth, By Region, 2018-2026 (%)

Figure 18    North America Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 19    North America Virtual Power Plant Market Share, By Technology, 2018 & 2026 (%)

Figure 20    North America Virtual Power Plant Market Share, By End User, 2018 & 2026 (%)

Figure 21    North America Virtual Power Plant Market Share, By System Type, 2018 & 2026 (%)

Figure 22    North America Virtual Power Plant Market Share, By Country, 2018 & 2026 (%)

Figure 23    South America Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 24    South America Virtual Power Plant Market Share, By Technology, 2018 & 2026 (%)

Figure 25    South America Virtual Power Plant Market Share, By End User, 2018 & 2026 (%)

Figure 26    South America Virtual Power Plant Market Share, By System Type, 2018 & 2026 (%)

Figure 27    South America Virtual Power Plant Market Share, By Country, 2018 & 2026 (%)

Figure 28    Europe Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 29    Europe Virtual Power Plant Market Share, By Technology, 2018 & 2026 (%)

Figure 30    Europe Virtual Power Plant Market Share, By End User, 2018 & 2026 (%)

Figure 31    Europe Virtual Power Plant Market Share, By System Type, 2018 & 2026 (%)

Figure 32    Europe Virtual Power Plant Market Share, By Country, 2018 & 2026 (%)

Figure 33    Asia-Pacific Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 34    Asia-Pacific Virtual Power Plant Market Share, By Technology, 2018 & 2026 (%)

Figure 35    Asia-Pacific Virtual Power Plant Market Share, By End User, 2018 & 2026 (%)

Figure 36    Asia-Pacific Virtual Power Plant Market Share, By System Type, 2018 & 2026 (%)

Figure 37    Asia-Pacific Virtual Power Plant Market Share, By Country, 2018 & 2026 (%)

Figure 38    Middle East & Africa Virtual Power Plant Market Value, 2017-2026 ($ Million)

Figure 39    Middle East & Africa Virtual Power Plant Market Share, By Technology, 2018 & 2026 (%)

Figure 40    Middle East & Africa Virtual Power Plant Market Share, By End User, 2018 & 2026 (%)

Figure 41    Middle East & Africa Virtual Power Plant Market Share, By System Type, 2018 & 2026 (%)

Figure 42    ABB: Financials

Figure 43    Siemens AG: Financials

Figure 44    Sunverge Energy Inc: Financials

Figure 45    AutoGrid Systems, Inc: Financials

Figure 46    Advanced MicroGrid Solutions, Inc: Financials

Figure 47    ENGIE Storage Services NA LLC: Financials

Figure 48    Spirae, LLC: Financials

Figure 49    Sonnen: Financials

Figure 50    Enbala technologies: Financials

Figure 51    Next Kraftwerke: Financials

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