A virtual power plant is a system that integrates several types of power sources to provide reliable overall power supply. A virtual power plant includes a central IT control system and distributed energy resources. Energy operators are adopting virtual power plant (VPP) software as a service, as it is more reliable, accurate, and it offers highly optimized planning and dispatch.
Rising adoption of virtual power network (VPP) across the globe is a key factor driving the virtual power plant (VPP) software as a service market. Utilities and power grid operators are adopting VPP, as if offers smart solution for operation management. The virtual power plant (VPP) is a network of decentralized power generating units. The VPP is designed to release the load on the grid by smartly distributing the power generated by the individual units during the peak load period. Big data architecture, advanced analytics, and machine learning (ML) are expected to create significant opportunities to the market during the forecast period. Demand for virtual power plant (VPP) software as a service is expected to rise during the forecast period, as it reduces deployment costs owing to its modular architecture and easy configurability. Lack of awareness about virtual power plant (VPP) is projected to hamper the market during the forecast period.
The global virtual power plant (VPP) software as a service market can be segmented based on solution, application, enterprise size, end-user, and region. Based on solution, the market can be categorized into software and professional services. The software segment can be further sub-segmented into smart inverter management, storage co-optimization, data transfer and control, load management and forecasting, asset management and optimization, data visualization, and others. The professional services segment can further split into installation & integration, support & maintenance, and consulting & training. Based on application, the market can be divided into residential, industrial, and commercial. In terms of enterprise size, the market can be bifurcated into small-medium enterprises (SMEs) and large enterprises. The large enterprises segment dominated the market, and the segment is expected to maintain its dominance during the forecast period. Based on end-user, the market can be split into renewal energy plant and nonrenewable energy plant energy. The renewable energy plant segment can be further sub-segmented into biomass, solar, wind, and hydroelectric energy. The nonrenewable energy plant segment can further split into natural gas, coal, and petroleum. The nonrenewable energy plant segment dominates the global market.
Based on region, the global virtual power plant (VPP) software as a service market can be segmented into North America, South America, Europe, Asia Pacific, and Middle East & Africa. North America accounted for a prominent share of the market in 2018, owing to high consumption of energy for industrial activities. The U.S. accounts for a major share, in terms of revenue, of the virtual power plant (VPP) software as a service market in North America. The U.S. is home to prominent petroleum and natural gas energy plants. According to data published by U.S. Energy Information Administration, in 2017, energy consumption by petroleum and natural gas in the U.S. accounted for 37% and 29%, respectively. Australia holds a major share of the market in Asia Pacific. AGL Energy Ltd, an energy provider based in Sydney, Australia, announced a 5 MW virtual-power-plant scheme for the city of Adelaide, in August 2016. For this, the company is expected to supply battery and photovoltaic systems from Sunverge Energy, Inc., a U.S.-based company that integrates solar, storage, and smart controls in order to maximize value for both electricity consumers and providers.
The companies in the market focus on offering better customer experiences. Technological developments in networking also increase competitiveness. Key companies operating in the global virtual power plant (VPP) software as a service market are GreenSync Pty Ltd., Next Kraftwerke GmbH, Viridity Energy, 3. Sunverge Energy, Inc., Energy & meteo systems GmbH, Solvera Lynx, AutoGrid Systems, Enbala Networks, Advanced Microgrid Solutions, and Green Charge Networks.
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