Virtual-Power-Plant Market Capacity Expected To Double By 2015
Apr 16, 2011 - renewgridmag.com
A new report from Pike Research suggests that the market for virtual power plants (VPPs) will continue its steady growth over the next several years, increasing from $5.2 billion in worldwide revenue in 2010 to nearly $7.4 billion by 2015, under a base-case scenario. In a more aggressive forecast scenario, global VPP revenues could reach as high as $12.7 billion during the same period.
Overall, Pike Research forecasts that the global VPP market will more than double in capacity over the next five years, rising from 19.4 GW in 2009 to 41.1 GW by 2015, under the base-case forecast scenario. The firm's aggressive forecast scenario contemplates that, with the right market conditions, VPP capacity could be as high as 67.5 GW by 2015, Pike Research adds.
"Virtual power plants represent an 'Internet of Energy,'" says senior analyst Peter Asmus. “These systems tap existing grid networks to tailor electricity supply and demand services for a customer. VPPs maximize value for both the end user and the distribution utility using a sophisticated set of software-based systems. They are dynamic, deliver value in real time, and can react quickly to changing customer load conditions.”
Asmus adds that wholesale auction VPPs, a market mechanism unique to Europe, will be the leading form of virtual power plant during the 2010-2015 forecast period. Demand-response-based VPPs, which are the largest commercial segment in the U.S., will also experience strong growth rates in the coming years.
The report - “Virtual Power Plants” - provides analysis of global market opportunities and growth prospects for virtual power plants, including an examination of business models, technology issues, and regulatory and policy factors. Key industry players are also profiled. The report features global market forecasts, segmented by region, for capacity and revenue in four key VPP segments through 2015. For more information, visit pikeresearch.com.
SOURCE: Pike Research