Virtual power plants, a key to controlling business energy costs
Join senior executives in San Francisco on July 11-12 to learn how leaders are integrating and optimizing AI investments for success. Find out more
Solar power is a proven distributed energy resource that helps businesses reduce energy costs. Yet it turns out to be the tip of the iceberg for the power companies can wield to wrest control of their management and energy costs. Beyond solar, there is a plethora of distributed energy sources and connected devices creating Virtual Power Plants, or VPPs. And companies must act or be left behind.
So what exactly are VPPs and how fast will they grow?
AWS describes VPPs as: "A connected aggregation of clean distributed energy (DER) resources – solar power, storage, grid-interactive efficient construction equipment, electric vehicle charging, controls and more – remotely controlled and automatically to deliver affordable, reliable power, decarbonization, and grid services.VPPs are utility-scale (large) and utility-grade (reliable, controllable) and are therefore a de facto powerhouse virtually connected from from multiple locations.
Fortune Business Insights forecasts the global VPP market to reach $6.47 billion by 2028, from $0.88 billion in 2021.
EventTransform 2023
Join us in San Francisco on July 11-12, where senior executives will discuss how they've integrated and optimized AI investments for success and avoided common pitfalls.
Register nowThis projected VPP growth is fueled by the growth of connected distributed energy resources, for example, electrical devices that you can monitor and/or control through an app on your phone. Most people are familiar with smart thermostats; these are joined by water heaters, home EV chargers, electric vehicles and backup battery systems.
To achieve net zero emissions in the United States, we need to replace nearly a billion appliances with efficient electric versions that can participate in demand flexibility; this represents approximately 2,000 billion dollars of investments. And these are usually replaced, as they wear out over a replacement cycle of five to 15 years.
In addition, the VPPs will be powered by the U.S. Office of Lending Programs, as DER deployment will be required at scale to meet the administration's goal of 100% clean electricity by 2035.
DER at 5% tipping pointWithin two years (by 2025), $110 billion is expected to be invested in Distributed Energy Resources (DER): $5 billion per month, growing to over $20 billion per month here the end of the decade. This demand is driven by the fact that DERs can provide critical grid support at a lower price than the grid and be lucrative for owners who choose to participate in demand flexibility.
VPP participants c...
Join senior executives in San Francisco on July 11-12 to learn how leaders are integrating and optimizing AI investments for success. Find out more
Solar power is a proven distributed energy resource that helps businesses reduce energy costs. Yet it turns out to be the tip of the iceberg for the power companies can wield to wrest control of their management and energy costs. Beyond solar, there is a plethora of distributed energy sources and connected devices creating Virtual Power Plants, or VPPs. And companies must act or be left behind.
So what exactly are VPPs and how fast will they grow?
AWS describes VPPs as: "A connected aggregation of clean distributed energy (DER) resources – solar power, storage, grid-interactive efficient construction equipment, electric vehicle charging, controls and more – remotely controlled and automatically to deliver affordable, reliable power, decarbonization, and grid services.VPPs are utility-scale (large) and utility-grade (reliable, controllable) and are therefore a de facto powerhouse virtually connected from from multiple locations.
Fortune Business Insights forecasts the global VPP market to reach $6.47 billion by 2028, from $0.88 billion in 2021.
EventTransform 2023
Join us in San Francisco on July 11-12, where senior executives will discuss how they've integrated and optimized AI investments for success and avoided common pitfalls.
Register nowThis projected VPP growth is fueled by the growth of connected distributed energy resources, for example, electrical devices that you can monitor and/or control through an app on your phone. Most people are familiar with smart thermostats; these are joined by water heaters, home EV chargers, electric vehicles and backup battery systems.
To achieve net zero emissions in the United States, we need to replace nearly a billion appliances with efficient electric versions that can participate in demand flexibility; this represents approximately 2,000 billion dollars of investments. And these are usually replaced, as they wear out over a replacement cycle of five to 15 years.
In addition, the VPPs will be powered by the U.S. Office of Lending Programs, as DER deployment will be required at scale to meet the administration's goal of 100% clean electricity by 2035.
DER at 5% tipping pointWithin two years (by 2025), $110 billion is expected to be invested in Distributed Energy Resources (DER): $5 billion per month, growing to over $20 billion per month here the end of the decade. This demand is driven by the fact that DERs can provide critical grid support at a lower price than the grid and be lucrative for owners who choose to participate in demand flexibility.
VPP participants c...
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