NORTH AMERICA VIRTUAL POWER PLANT MARKET FORECAST 2024-2032

The North America virtual power plant market growth analysis includes the assessment of the United States and Canada. The growth of the United States Virtual Power Plant (VPP) market is fueled by the significant adoption of virtual power plants to optimize energy distribution while minimizing energy wastage. An example of this is the strategic integration of solar-powered batteries and installations with energy-efficient buildings, as highlighted by the Yale School of Forestry & Environmental Studies. Additionally, various renewable energy companies in the United States are collaborating with utilities to reduce energy demand during peak hours, ensuring a supply of renewably produced electricity to U.S. regions.

The U.S. electricity generation is diversified, encompassing fossil fuels, nuclear energy, and renewable sources. As per the U.S. Energy Information Administration, renewable energy sources such as solar photovoltaic and wind significantly contribute to the total electricity generation. Notably, natural gas plays a pivotal role as a fuel source for electricity generation in the U.S.

The North America virtual power plant market segmentation includes technology and application. The technology segment includes distributed generation, demand response, and mixed assets.

Demand response is described as an automated grid control mechanism designed to maintain grid stability by altering the typical electricity consumption patterns of end-users during peak hours. When virtual power plants are integrated with the demand response mechanism through information and communication technology, they effectively mitigate the demand-supply gap and avert power outages. Changes in electricity consumption patterns are contingent on alterations in electricity prices and incentive programs structured to decrease electricity usage during high tariff periods in the wholesale market. 

The primary contributors to grid load are vehicle electrification and HVAC systems. According to the Federal Electricity Regulatory Commission, the charging of electric vehicles increases the load on the local feeder by an average of 20% during peak hours. To address the load surge resulting from vehicle electrification, smart charging mechanisms utilizing demand response technologies are employed to shift the grid load during off-peak hours.

Demand response-enabled virtual power plants predominantly serve for electrical load management, contingent on day-ahead consumption patterns and reliable electricity forecasting. Major industry players like Siemens AG offer demand response management systems, which, when integrated with virtual power plants, present an efficient solution for optimizing the grid network.

Some of the leading companies in the North America virtual power plant market include Siemens, General Electric, ABB, Cisco Systems Inc, etc.

General Electric is a global digital industrial corporation with a diverse portfolio encompassing aircraft engines, oil and gas production equipment, power generation, household appliances, medical imaging, as well as business and consumer financing and industrial products. The company markets its products under various brands such as Immersion, Infusion, Lumination, Albeo, TriGain, Tetra, Avantapure, Monogram, GE Café, GE Profile, and G.E. 

Operating primarily in North America, Europe, Asia, South America, Australia, and Africa, it has manufacturing plants in the U.S. and Puerto Rico. Headquartered in Boston, Massachusetts, USA, General Electric operates through eight business segments, power, aviation, healthcare, energy connections and lighting, oil and gas, capital, renewable energy, and transportation.