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Virtual power plant is a cloud based control center (centralized or distributed) which takes advantages of internet of things (IoT) devices and information and communication technology helps to aggregate the capacity of distributed energy resources. Virtual power plant found its application across end user segment which includes commercial & industrial and residential. Implementation of smart grid is boosting the growth with a CAGR of around 30% in global virtual power plant market. In 2016, Department of Energy U.S. has invested around $220 million for grid modernization initiative. Furthermore, Department of Energy has also invested around $150 million in cyber security development projects for grids. Hence, the increasing investment for the development of smart grid projects is driving growth in virtual power plant market.
According to World Coal Association, coal fired power plant contribute around 41% of global electricity in 2016. Coal fired electricity generation still count to be the largest source for electricity production across the globe. Moreover, decreasing coal reserve & increasing CO2 emission are the few key factors that is increasing the use of renewable energy across the globe. As per Enerdata, in 2015, in China, U.S. and Australia production of coal is around 3583 million tons, 820 million tons and 471 million tons respectively, which was decreased from 3651 million tons in China, 916 million tons in U.S. and 491 million tons in Australia in 2014. Thus, decreasing coal production is resulting into increase in renewable energy production. Furthermore, the consumption of nuclear and hydroelectricity in 2015 is 583 million tons oil equivalent and 892 million tons oil equivalent respectively. The rising concern to generate renewable energy due to cost effectiveness is one of the key factor that is increasing the demand for renewable energy generating power plant. Hence, the growing demand for renewable energy sources as compared to conventional energy sources is boosting the growth in the global virtual power plant market. Factors such as adverse effect of radio frequency exposure on health is key factor restricting the growth of global virtual power plant market.
Source: OBRC Analysis.
The report on global virtual power plant market includes technology and end user.
Technology used in virtual power plant are:
The end user of virtual power plant includes:
The report scope is widely categorized on the basis of its technology used in virtual power plant which include demand response, distribution generation and mixed assets. Moreover, the market revenue estimates and forecast includes software system. However, report scope excludes hardware system.
The global virtual power plant market report has been geographically segmented in:
North America accounts for highest revenue share in 2016. Increasing generation of renewable energy such as wind energy, solar energy, etc. installation in North American countries such as (U.S. & Canada) is contributing towards the growth of North American virtual power plant market. In 2016, in U.S. the total installed wind energy was 82,184 MW which was 73,991 MW in 2015 as per global wind energy council. Furthermore, in 2016, in Canada total installed wind energy was 11,900 MW which was 11,219 MW in 2015. Hence, rising installation of wind energy in North American countries is boosting the growth in North American virtual power plant market. Furthermore, according to Solar Energy Industry Association, in 2017, in US only, total solar PV installed is around 13 GW that is expected to rise to 100 by the end of 2021. Hence, increasing solar energy installation in U.S. is contributing towards the growth of North American virtual power plant market. Furthermore, Asia Pacific is the fastest growing market of virtual power plant market. Growth in Asia Pacific virtual power plant market is mainly driven by the increasing renewable energy installation in China and increasing smart grid development initiative in India. According to Indian government, in 2015, the government has invested around $210 million for National Smart Grid Mission that is expected to complete by 2017. Hence, the investment by Indian government for development of smart grid infrastructure is contributing towards growth of Asia Pacific virtual power plant market.
Global virtual power plant market report covers segmentation analysis of technology and end user. Report further covers segments of technology which includes demand response, distribution generation and mixed assets. Demand response segment hold the highest revenue share in technology segment in 2016. Increasing concern for peak load management is one of the key factor that is increasing revenue share of demand response technology. The end user of virtual power plant includes commercial & industrial and residential.
The major market players of the global virtual power plant market are:
These companies are using various strategies such as merger & acquisition, collaboration, partnership and product launch. Whereas, deployment & expansion is the key strategy adopted by the companies in the virtual power plant market.
For Example; On March 2017, Open Access Technology International, Inc. announced that the OATI web distributed system is now producing Great River Energy. The system will allow to forecast accurate demand response capabilities for demand side assets.
In June 2016, Hitachi Ltd. and Hitachi America Ltd., announced that the company expand its energy solution business in North America. The business unit provide comprehensive energy solution to North America customers to address energy challenges.
The report covers detailed analysis of companies which comprises overview, SCOT analysis, product portfolio, strategic initiative, strategic analysis, competitive landscape and market share analysis in virtual power plant market.
Key reason to buy the report:
How we are different from others:
At Occams we provide an extensive portfolio which is comprehensive market analysis along with the market size, market share, and market segmentations. Our report on global virtual power plant market offers detailed analysis of strategic models such as investment vs. adoption model, see saw analysis and others strategic models. Also, the report contains the detailed analysis of application, adoption scenario and decision support for each segment. The report discusses competitive landscape of the virtual power plant market, with giving extensive SCOT analysis of key companies.
Key findings of the global virtual power plant market: