Rising Adoption of Renewable Energy Sources Driving Virtual Power Plant Popularity

Published on March 23 2021

The increasing adoption of renewable sources for producing energy is massively augmenting the demand for virtual power plants throughout the world. According to reports, the production of power from renewable sources such as wind and solar is rising faster than that generated from fossil fuels. As per industry experts, the share of renewable sources in energy production across the world will increase from 7% in 2015 to 20% by the end of 2035.

Due to the existence of inadequate and outdated power infrastructure, various developing nations experience regular power outages. Because of this reason, many emerging economies are making huge investments in the establishment of virtual power plants. These plants will solve the problem of power cuts and provide a continuous supply of power. Due to these factors, the popularity of virtual power plants is rising rapidly around the world. This is propelling the growth of the virtual power plant market.

When consumer is taken into consideration, the virtual power plant market is classified into electric vehicle, residential, commercial, and industrial. Out of these, the electric vehicle category is predicted to demonstrate the fastest growth in the market in the future years. This will be because of the rising utilization of electric vehicle charging facilities and infrastructure for catering to the requirements for the several electric vehicles running on the roads.

The virtual power plant market will exhibit huge expansion in Europe and North America in the coming years, as per the estimates of P&S Intelligence, a market research company based in India. This will be due to the increasing adoption of renewable power projects, the mushrooming sales of electric vehicles and the rising usage of electric vehicle charging facilities, and the growing demand for a reliable supply of power from various distributed power resources in the regional countries.

Thus, it can be said with confidence that due to the growing requirement for continuous supply of power and the rising adoption of renewable energy sources for power generation, the demand for virtual power plants will shoot-up across the world in the future years.