ABB_id2059
in News Departments > New & Noteworthy
print the content item

Annual worldwide revenue from virtual power plants (VPPs) will grow from less than $1 billion this year to $3.6 billion in 2020, according to a report from Navigant Research. Driven by the integration of variable-generation resources - especially from wind and solar - a viable VPP market is emerging and will see substantial growth from a relatively small base, the report says.

Using software systems, VPPs can combine diverse, distributed resources into a unified network via sophisticated planning, scheduling and bidding of distributed energy resource-based services.

"The growth in distributed, renewable power generation sources requires additional supply and demand flexibility to accommodate fast ramping periods and corresponding supply forecast error," says Peter Asmus, principal research analyst with Navigant Research. "VPPs represent an ideal optimization platform for the coming transformation of the power grid."

Under a more aggressive forecast scenario, VPP vendor revenue could reach $4.3 billion by 2020, Navigant notes. On the other hand, the report says rate-basing utility prerogatives still offer deployment barriers for both VPPs and the complementary market for microgrids. Although recent regulatory reforms are moving in the direction of a greater reliance on distributed energy resources, Navigant says centralized fossil fuel power plants will still dominate electricity markets for quite some time.




Hybrid Energy Innovations 2015

Trachte_id2056
Latest Top Stories

The Song Remains The Same: AWEA Says Stable Policy Can Protect U.S. Wind Investment

Although the U.S. wind industry added more than four times the amount of wind in 2014 compared with 2013, predictable policy is needed to sustain its long-term success.


High Net-Worth Investors Claim 'All Of The Above' On Energy, Renewable And Otherwise

According to a recent Morgan Stanley poll, high-dollar investors favor investment in renewable energy technologies, such as wind and solar.


U.S. Wind Power Installations Surpassed 4.7 GW Last Year, Although China Still Leads

Bloomberg New Energy Finance reports that U.S. wind installations came back in a big way from a disappointing 2013.


IRS Specifies Performance, Quality Standards For Small Wind Turbines

The Internal Revenue Service (IRS) recently issued guidelines creating safety and performance standards for small wind turbines to be eligible for the 30% investment tax credit.


Hot Times North Of The Border: Canada Tops Previous Record For Installed Wind Capacity

For the second consecutive year, Canada's wind market has bested the country's previous mark for new installations.

Hybrid Energy Innovations 2015