According to a new report, now available on ASDReports, Virtual Power Plant Market by Technology and Application: Global Opportunity Analysis and Industry Forecast, 2017-2023, the global virtual power plant market was valued at $762 million in 2016, and is expected to reach at $4,587 million by 2023, registering a CAGR of 25.9% from 2017 to 2023. North America is expected to dominate the market and is expected to maintain this trend throughout the forecast period.
Virtual power plant is an aggregation of decentralized generators with the outline to integrate different distributed energy sources such as biomass plants, biogas block heating plants, wind turbines, and hydroelectric plants.
Rise in demand for renewable energy in power generation sector, changes in dynamic of power grids from centralized to distributed, and moderating costs and easy accessibility of energy storage drive the growth of the virtual power plant market. However, health concerns over high frequency human exposure of electromagnetic and radio waves hamper the potential of the market for different end users.
The industrial segment accounted for around half the share of global market in 2016, and is expected to maintain its dominance during the forecast period, owing to energy efficiency of VPPs. However, residential end users are also expected to grow with a high CAGR due to rise in demand for renewable energy.