UNITED STATES VIRTUAL POWER PLANT MARKET FORECAST 2024-2032

The United States has been a focal point for rapid technological advancements in the power industry. The increasing market penetration of distributed energy resources is further propelling the adoption of virtual power plants. This, in turn, will mitigate power fluctuations and offer ancillary services such as voltage control and frequency control.

The United States virtual power plant market segmentation includes technology and application. The application segment includes residential, commercial, and industrial. 

The surge in population and energy demand, coupled with an uptick in CO2 emissions, has heightened the urgency for eco-friendly alternatives. The electricity sector has undergone a significant transformation in the last five years, driven by the escalating need for power generation from renewable sources. While conventional energy sources dominated the sector in the past, it is now predominantly steered by technological innovations, such as the decentralized model for electricity generation.

Previously, the industry grappled with the challenge of fluctuations in electricity supply when relying on renewable sources. This instability has been addressed through the rapid implementation of virtual power plants, enabling end users to attain a consistent electricity supply. Through features like voltage and frequency control, demand forecast, and reduced per-unit electricity cost, virtual power plants facilitate the participation of small-scale generators in the day-ahead wholesale market. Key vendors, including Siemens AG, Schneider Electric, ABB Ltd, Next Kraftwerke, and General Electric, offer platforms for monitoring, controlling, and analyzing production and energy-related data.

Presently, the primary focus of industrial consumers is on reducing energy costs and ensuring an uninterrupted electricity supply to meet demands. Achieving a reliable power supply involves intelligently integrating various energy generation sources within the virtual power plant software at industrial sites. For example, sewage treatment plants in industries utilize sewer gas, which, when integrated into a virtual power plant, results in surplus energy for self-electricity generation. Another technological advancement in industry involves combined heat and power, capturing heat from manufacturing processes for reuse, thereby reducing energy intensity.

Some of the prominent companies in the United States virtual power plant market include AutoGrid Systems Inc, Sunverge Energy Inc, Energy Hub, etc.

Established in 2011, AutoGrid Systems Inc is a California-based American company specializing in cutting-edge application suites for flexibility management. These applications empower electricity retailers and renewable energy project developers to effectively oversee networked distributed energy resources (DERs) in real time. 

With a global presence, AutoGrid Systems Inc operates in various regions, employing approximately 103 individuals. The company’s headquarters are located in the United States, and it has operational centers in India, Amsterdam, and Japan.