Guidehouse Insights Estimates Global VPP-Enabled Energy Storage Additions Will Grow at a Compound Annual Growth Rate of 30% Through 2030
Market barriers include cybersecurity risk, regulatory hurdles and costs of deployment
BOULDER, Colo., June 8, 2022 /PRNewswire/ -- A new report from Guidehouse Insights explores virtual power plant (VPP) uses in distributed energy storage (DES) markets.
As the demand for distributed energy resources (DER) deployment increases, so has the need to examine the issues of high costs and renewable energy source intermittency. With the help of VPPs, DES markets can become more robust and reliable. According to a new report from Guidehouse Insights, global VPP-enabled energy storage additions are anticipated to be 3.0 GW by 2030, growing from 288.1 MW in 2021 at a compound annual growth rate (CAGR) of 29.8%.
"As distributed energy markets increasingly become more connected and designed with intelligent management technology, more DER deployments are anticipated to have VPP capabilities at the ready," says Maria Chavez, research analyst with Guidehouse Insights. "With the help of VPPs, DES markets can become more robust and reliable."
Residential energy storage customers can enjoy a connected and energy efficient home management system that creates cost savings over time and allows homeowners to take a more active role in their energy consumption and use. Partnerships with utilities and programs that incentivize participation are also making it easier to integrate VPPs into the home. Despite the advantages, barriers to VPPs in these energy storage markets still persist, such as the upfront costs of deployment and aggregation, potential privacy and cybersecurity risks, and regulatory hurdles, according to the report.
The report, VPP Applications for Distributed Energy Storagehttps://guidehouseinsights.com/reports/market-data-Smart-Streetlighting, explores the different applications for VPPs in energy storage markets and analyses the market size for VPP-enabled energy storage technologies. As this market grows, Guidehouse Insights recommends that leaders in the industry focus on access to VPP programs, standardize systems to be compatible among VPP and storage technologies, and leverage the energy efficiency benefits of VPP-enabled energy storage in order to reach climate goals more ambitiously. An executive summary of the report is available for free download on the Guidehouse Insights website.
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 13,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, VPP Applications for Distributed Energy Storage, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
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