New Strategies and Programs for Virtual Power Plants to Set the Scene for Modified Ways of Electricity Generation
31 Mar 2021
The concept of the virtual power plant is coming to the limelight with more and more people switching towards energy efficiency and renewable energy sources. Virtual power plants enable the installation of inexpensive equipment for both residential as well as commercial purposes with smart networking software. For a fact, this has taken over a number of functions that are performed by natural gas, coal-fired, and nuclear plants.
The virtual power plant provides proficient electricity generation even on high load stages. With its medium-scale electricity generating unit and renewable energy sources, it offers a possibility for trading or selling power in the market. Owing to its perspective, the idea of virtual power plants is widely rolling out across the globe. With its great potential, the virtual power plant can change the entire system of electrical generation and facility.
In the past few years, the investments for new projects based on advancements and installation of the virtual power plant have been increased to a certain extent. The market players, on the other hand, have started strategizing on a new level to expand the market and values across the world. Apart from this, the market is getting thrived with a number of new activities. Here are a few of these recent happenings.
Business expansion has become a prominent trend in the industry. Tesla, the US-based leading clean energy company and giant manufacturer of electric vehicles and batteries, has recently announced to set up its Tesla energy plan in Australia. The battery-based trade energy plan aims to offer lower electricity rates to the customers in Australia which is infamous for its high energy cost. At the same time, the plan also expands the company’s current virtual power plant in the province along with balancing the rooftop solar power. Other than this, the deal also promises a number of benefits including maintaining a back-up reserve, power all with 50 discharge cycles per year, discounts, feed-in-tariffs, and grid support credits.
New plans and programs have become one of the strategies of market players for further innovations. Recently, A California-based home energy management and smart grid services provider, Swell Energy has announced to launch its virtual power plant in Queens, New York. The residential solar plus storage program offers solar-powered batteries that aim to strengthen the grid reliability. The new program also paves the way for new energy infrastructure. Furthermore, the program is a joint initiative with Con Edison, an energy company in New York City.
Electricity providers are now focusing to adopt virtual power plants as their distribution system for balancing renewable generation inconsistency and provide grid resources. The penetration for renewable energy has increased in both the power generation system as well as among the customers. Owing to this, the dynamics of power grids are getting changed from centralized to distribute. These features are majorly leading the market growth. With rising investments, the virtual power plant is expected to gain a huge tract of the energy sector in the coming years. According to a report published by Allied Market Research, the global virtual power plant market is anticipated to hit $5.9 billion by 2027.
The moderating prices and easy accessibility of energy storage with the virtual power plant is one of the major factors driving the market growth. At the same time, the companies and market players are also commencing new plans and projects to introduce further developments and augment the industry. Moreover, people across the world are highly moving towards electric vehicles. Also, intelligent office buildings and smart grids are getting promoted. All these aspects are expected to present an array of opportunities for the virtual power plant in the coming era.
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.