Customer outreach and education, cybersecurity, costs, and competition between transmission and distribution systems for flexibility are among global barriers to growth
BOULDER, Colo., March 23, 2022 /PRNewswire/ — A new report from Guidehouse Insights examines the virtual power plant (VPP) market in five select countries across North America, Europe, and the Asia Pacific region as well as the Latin America and Middle East & Africa regions. The report provides projections segmented by VPP type and show VPP spending and revenue from 2022 through 2031.
VPPs have gained significant traction across all customer segments in recent years as distributed energy resources (DER) deployment continues to increase. VPPs can aggregate and dispatch hundreds or thousands of DER assets to balance the grid when renewable output is not sufficient. According to a new report from Guidehouse Insights, mixed-asset VPP capacity dominates the market and in all but one region it also has the highest expected average compound annual growth rate (CAGR). Australia and Japan are expected to have the highest CAGR for total VPP capacity at 30.9%.
“Though still relatively new to the energy landscape, VPPs have experienced significant growth,” says Dan Power, research analyst with Guidehouse Insights. “Australia and Japan have embraced VPPs through government funding, increasing competition in the marketplace, and offering more options for customers and businesses.”
VPPs are still an emerging energy technology, and as such, the market is not as mature worldwide as other, more established technologies. Other barriers to growth include customer outreach and education, customer privacy and cybersecurity, system and DER costs, and competition between transmission and distribution systems for flexibility.
The report, Market Data: Country Forecasts for Virtual Power Plants, examines the VPP market in five select countries across North America, Europe, and the Asia Pacific region. Regional-level estimates for Latin America and the Middle East & Africa are also presented. Individual projections segment capacity by VPP type and show total VPP spending and revenue in each market from 2022-2031. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 12,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: Country Forecasts for Virtual Power Plants, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
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SOURCE Guidehouse Insights