Virtual power plant market set for growth

Using software systems, virtual power plants can combine a rich diversity of independent resources into a unified network via sophisticated planning, scheduling and bidding of distributed energy resource-based services.

Driven by the integration of variable generation resources — especially from wind and solar energy — a viable virtual power plant market is emerging and will see substantial growth, from a relatively small base, over the next several years.

According to a recent report from Navigant Research, annual worldwide revenue from Virtual power plants will grow from less than $1 billion in 2013 to $3.6 billion in 2020, under a base forecast scenario.

Under a more aggressive forecast scenario, virtual power plant vendor revenue could reach $4.3 billion by 2020.

Rate-basing utility prerogatives still offer deployment barriers for both Virtual power plants and the complementary market for microgrids. Although recent regulatory reforms are moving in the direction of a greater reliance on distributed energy resources, centralized fossil fuel power plants will still dominate electricity markets for quite some time. Compared to traditional coal and natural gas-fired plants, virtual power plants offer a low-cost platform to squeeze more value out of existing infrastructure assets and to reduce greenhouse gas emissions associated with peaking power plants.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs