Allied Market Researcher has made an estimation that the virtual power plant market could reach $4.5bn by 2023.
In the next six years, the market could increase from $762mn due to demand side response technology already accounting for more than three-fifths of the global market share.
It will be the rise in demand for renewable energy, along with changes in the dynamic of power grids – from centralised to distributed – and the moderating costs and easy accessibility of energy storage, that will drive the market increase.
A virtual power plant is a network of decentralised power generating units, such as combined heat and power (CHP) units, wind and solar farms, and batteries.
The $762mn market last year was made up predominantly by America, who accounted for more than half, with the expectation that North America will continue to command the market for years to come.
Allied Market Research has however added: “Health concerns over high frequency exposure of electromagnetic and radio waves hamper the potential of the market for different end users.”