The North America Virtual Power Plant Market is expected to witness market growth of 21.2% CAGR during the forecast period (2024-2031).
The US market dominated the North America Virtual Power Plant Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $4.79 billion by 2031. The Canada market is experiencing a CAGR of 23.9% during 2024-2031. Additionally, the Mexico market is expected to exhibit a CAGR of 22.8% during 2024-2031.
The virtual power plant concept has gained significant attention in the energy sector due to its potential to optimize energy distribution, improve grid stability, and foster sustainability. A Virtual power plant is a network of decentralized, small-scale energy resources that are aggregated and managed through advanced software systems.
The primary application of these plants is optimizing energy management across grids. VPPs provide a means to aggregate and control small-scale energy systems, which are often intermittent and geographically dispersed. These include renewable energy sources such as solar and wind, energy storage systems, and demand-side management systems.
As Mexico’s energy mix becomes more reliant on intermittent renewable sources, VPPs will help balance supply and demand by intelligently managing power distribution from these sources and ensuring reliability. Additionally, VPPs can optimize energy storage and respond dynamically to shifts in energy supply, helping Mexico meet its clean energy targets and improve the overall efficiency of its power grid. Canada’s electricity demand is projected to grow by 1% annually from 2014 to 2040, a substantial portion of this growth driven by the industrial sector. As electricity consumption rises, the country plans to expand its generation capacity to meet this demand, and a significant share of the new capacity will come from wind power. By 2040, wind power’s share of total electricity generation in Canada is expected to increase from over 7% to nearly 11%. Thus, the rising electricity generation from renewable sources in Mexico and the increasing electricity demand in Canada will play a crucial role in these plants.
The US market dominated the North America Virtual Power Plant Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $4.79 billion by 2031. The Canada market is experiencing a CAGR of 23.9% during 2024-2031. Additionally, the Mexico market is expected to exhibit a CAGR of 22.8% during 2024-2031.
The virtual power plant concept has gained significant attention in the energy sector due to its potential to optimize energy distribution, improve grid stability, and foster sustainability. A Virtual power plant is a network of decentralized, small-scale energy resources that are aggregated and managed through advanced software systems.
The primary application of these plants is optimizing energy management across grids. VPPs provide a means to aggregate and control small-scale energy systems, which are often intermittent and geographically dispersed. These include renewable energy sources such as solar and wind, energy storage systems, and demand-side management systems.
As Mexico’s energy mix becomes more reliant on intermittent renewable sources, VPPs will help balance supply and demand by intelligently managing power distribution from these sources and ensuring reliability. Additionally, VPPs can optimize energy storage and respond dynamically to shifts in energy supply, helping Mexico meet its clean energy targets and improve the overall efficiency of its power grid. Canada’s electricity demand is projected to grow by 1% annually from 2014 to 2040, a substantial portion of this growth driven by the industrial sector. As electricity consumption rises, the country plans to expand its generation capacity to meet this demand, and a significant share of the new capacity will come from wind power. By 2040, wind power’s share of total electricity generation in Canada is expected to increase from over 7% to nearly 11%. Thus, the rising electricity generation from renewable sources in Mexico and the increasing electricity demand in Canada will play a crucial role in these plants.
List of Key Companies Profiled
- Siemens AG
- Toshiba Corporation
- Shell plc
- Hitachi, Ltd.
- ABB Ltd.
- Tesla, Inc.
- Robert Bosch GmbH
- GE Vernova Group
- Schneider Electric SE
- Cisco Systems, Inc.
Market Report Segmentation
By Technology- Demand Response
- Distributed Energy Resource
- Mixed Asset
- Industrial
- Commercial
- Residential
- US
- Canada
- Mexico
- Rest of North America
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. North America Virtual Power Plant Market by Technology
Chapter 6. North America Virtual Power Plant Market by End Use
Chapter 7. North America Virtual Power Plant Market by Country
Chapter 8. Company Profiles
Companies Mentioned
- Siemens AG
- Toshiba Corporation
- Shell plc
- Hitachi, Ltd.
- ABB Ltd.
- Tesla, Inc.
- Robert Bosch GmbH
- GE Vernova Group
- Schneider Electric SE
- Cisco Systems, Inc.
Methodology
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