Global virtual power plant market is expected to grow with a CAGR of around 30% during the forecast period 2016-2023. Decreasing cost of solar energy generation is contributing towards the growth of the market. According to Solar Energy Industry Association, cost of solar energy installation is decreased by 60% in past 10 years (2008-2017). Factor attributing towards decrease in prices is increasing solar PV installation. In 2017 till date, in the U.S., total solar PV installation is around 13 GW that is expected to rise to 100 GW solar PV installation by the end of 2021 in the U.S. Reducing prices of solar power is increasing the demand for solar power across the globe. The increasing demand for solar power has resulted into increase in installation of new solar power plant. Thus, the adoption of virtual power plant is expected to gradually rise in solar power generation. Hence, reducing solar energy installation cost is driving the growth in global virtual power plant market. In addition to driving factor there are factors such as adverse health effects due to radio frequency exposure is restricting the growth of the global virtual power plant market.
North America held the highest revenue share in 2016 in global virtual power plant market. Growth in North American virtual power plant market is mainly driven by rising adoption of solar energy by U.S. corporations such as Apple Inc., Walmart, Target, etc. The rising concern to generate solar energy is one of the key factor that is boosting the adoption of virtual power plant. According to Solar Energy Industry Association, in October 2016, In U.S. top 25 companies has installed about 1,100 MW solar capacity in 2000 different facilities across the region. around 1,100 MW of solar capacity installed by top 25 companies of U.S. on around 2,000 different facilities with in the U.S. Hence, increasing solar energy installation in North American countries (U.S. & Canada) is boosting growth in North America virtual power plant market. furthermore. It is expected that Canadaian virtual power plant market is expected to grow with the highest CAGR during forecast period. The growth of Canadian market is mainly driven by the rising concern for renewable energy generation due to cost effectiveness of renewable energy.
Global virtual power plant market is filled with number of players. Key players who are actively working for the development of new technology are IBM Corporation (U.S.), Virtidity Energy (U.S.) ABB (Switzerland), Hitachi (Japan), Schneider Electric (France), Siemens (Germany), etc. all such players are adopting various strategic initiative such as product development, investment, research and development, expansion, etc. to sustain in the dynamic market.
Global virtual power plant market is segmented on the basis of end user and technology. End user segment of virtual power plant includes commercial & industrial and residential. Moreover, demand response, distribution generation and mixed assets are included in technology segment. Demand response technology segment holds highest revenue share in 2016. Increasing concern for peak load management is one of the key factor that is increasing revenue share of demand response technology.