Virtual Power Plant Spending Expected to Reach $2.1 Billion Annually by 2025

By Editors of Power Engineering

A new report from Navigant Research indicates the use of virtual power plans will continue to grow, and reach a yearly investment of $2.1 billion by 2025.

Navigant indicated VPPs are an increasingly popular strategy to manage the growing prevalence of two-way power flows. This technology relies on software and the smart grid, working remotely and automatically to combine a diversity of independent resources into a network via sophisticated planning, scheduling, and bidding of DER-based services.

“The mixed asset VPP has achieved dramatic growth in the last couple of years and is the preferred platform in today’s market, particularly as the role of energy storage grows,” says Peter Asmus, principal research analyst with Navigant Research. “Mixed asset VPPs can also include everything from diesel generators to heat pumps and electric vehicles (EVs), and some are more focused on thermal energy than electricity.”

The report indicated software will be the largest portion of the annual spend at $1.8 billion. Energy Storage as an enabling technology will reach $12.4 billion annually.

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