Virtual Power Plant Market: The Decarbonization Portrait

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Virtual Power Plant Market The Decarbonization
Portrait Addressing decarbonization challenges
involves overcoming policy stalemates, regulatory
restrictions, and budgetary constraints.
Accordingly, there is a pressing need for more
robust legislative requirements. This extends
beyond the overarching Net-Zero 2050 goal,
demanding additional concrete and measurable
milestones. Simultaneously, a transformative
disruption driven by technology is crucial to
reshaping the foundational aspects of the utility
business. At the forefront of this transformative
approach is the Virtual Power Plant (VPP), an
interconnected network comprising distributed
generators (DGs) and energy storage systems
(ESSs). As per Inkwood Research, the global
virtual power plant market is expected to record
a CAGR of 24.35 during 2024-32 and register a
revenue of 9530.06 million by 2032.
Empowered by information and communication
technology (ICT), users with distributed energy
resources (DERs) within a VPP can function as
both energy consumers and generators. Request a
FREE sample of the Virtual Power Plant
Market How Can Virtual Power Plants (VPPs)
Reduce Carbon Emissions? According to the World
Nuclear Association, electricity generation
constitutes more than 40 of the total
energy-related emissions. Conversely, changes in
the urban environment have reciprocal impacts on
VPPs. By aggregating distributed renewable
resources, VPPs contribute to reduced dependence
on fossil fuels, leading to lower carbon
emissions.
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• Furthermore, VPPs can mitigate the impact of
  urban density on the performance of distributed
  renewable systems. This can be facilitated by
  access to additional information about the urban
  environment, such as local climate and
  geographical data. Moreover, through optimized
  management, VPPs can decrease negative
  environmental effects and enhance the safety of
  renewable energy across distributed units.
• This blog examines the VPPs contribution to
  efficiently navigating the decarbonization
  landscape.
• Two Crucial Ways VPPs Can Support Decarbonization
• Reduced Utilization of Fossil Fuel Power Plants
• By minimizing the operation of fossil-fuel power
  plants, Virtual Power Plants (VPPs) contribute to
  a reduction in carbon emissions within the power
  sector. For instance, VPPs facilitate the
  transition of energy consumption to periods when
  renewable sources are plentiful, such as
  optimizing for solar energy during daylight
  hours.
• Furthermore, in densely populated cities,
  electricity demand often peaks during specific
  hours due to increased industrial and residential
  activities. VPPs can strategically distribute
  energy usage, ensuring that more power is drawn
  from renewable sources during these critical
  periods. This reduces the carbon footprint
  associated with traditional power plants
  alongside enhancing the overall grid reliability
  by avoiding congestion during peak demand.
• Facilitating Electrification
• Virtual Power Plants (VPPs) play a crucial role
  in supporting the transition toward an
  increasingly electrified economy. The
  electrification of various loads and end-uses,
  such as electrified transportation, has the
  potential to strain distribution circuits,
  substations, and transformers responsible for
  delivering power to end-users, resulting in
  considerable costs.
• However, by strategically shifting demand to
  periods with lower demand, virtual power plants
  can effectively mitigate stress on these
  distribution systems. This also enables a more
  cost-effective electrification process,
  particularly for carbon-based end-uses like
  transportation or heating.
• Whereas in scenarios where resilience is crucial,
  such as during natural disasters or emergencies,
  VPPs can facilitate the creation of microgrids.
  These independent energy systems, powered by a
  combination of renewable sources and storage,
  ensure continued power supply to critical
  facilities like hospitals and emergency shelters.

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• globally. This initiative aims to mitigate the
  environmental impact of the existing 500,000
  diesel school buses in operation.
• A Vehicle-to-Grid (V2G) initiative involving
  MitsubishiOutlander Plug-in Hybrid Electric
  Vehicles (PHEVs) in Thailand. This initiative is
  an integral component of the Electricity
• Generating Authority of Thailands comprehensive
  VPP feasibility study.
• The Mitsubishi Outlander PHEVs are equipped with
  bidirectional charging technology, enabling them
  to function as backup power sources while also
  feeding surplus power back into the grid.
• (Source National Renewable Energy Laboratory)
• Stay up-to-date with whats trending in the
  Global Virtual Power Plant Market
• Global Virtual Power Plant Market Potential What
  Can Be Expected in the Future?
• The Inflation Reduction Act (IRA) offers consumer
  incentives aimed at electrifying residences and
  businesses. Leveraging these incentives has the
  potential to expedite novel Distributed Energy
  Resources (DERs) adoption. Integrating novel
  Distributed Energy Resources
• (DERs) into Virtual Power Plants (VPPs) creates
  an opportunity to seamlessly navigate these
  resources, enhancing their collective value to
  the grid.
• Furthermore, to maximize the economic and
  emissions impact of VPPs, utilities and grid
  operators play a pivotal role. Empowering VPPs to
  offer frequent and flexible services can
  significantly contribute to their effectiveness.
  Similarly, policymakers can design inclusive
  policies, programs, and market rules, minimizing
  barriers for VPPs to provide a diverse array of
  services.

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• FAQs
• How can virtual power plants (VPPs) contribute to
  sustainability in the energy sector?
• A Virtual power plants optimize the use of
  renewable energy sources by strategically
  managing electricity demand. By shifting
  consumption away from peak hours and integrating
  clean energy alternatives like solar and wind
  power, VPPs significantly reduce reliance on
  high-emission power plants.
• How do virtual power plants help businesses cut
  costs in their energy operations?
• A By incorporating renewable energy sources and
  energy storage, businesses can take advantage of
  more affordable and sustainable power,
  contributing to long-term
• cost savings and resilience against fluctuating
  energy prices.