An interesting new report from Pike Research puts a spotlight on virtual power plants (VPPs) which, while not a new concept, appear to be ready for prime time. Pike’s research suggests that after a decade of pilot projects testing and validating VPPs as a smart grid platform, we will see significant growth over the next few years.
Pike is forecasting the total worldwide capacity of VPPs will jump from 3,800 megawatts this year to 15,400 MW by 2020 – a five-fold increase.
“VPPs represent an ‘Internet of energy,’ tapping existing grid networks to tailor electricity supply and demand services for a customer, utility, or grid operator,” says Pike principal research analyst Peter Asmus. “By stretching supplies from existing generators and utility demand reduction programs, they deliver greater value to the customer while also creating benefits for the host distribution utility and the transmission grid operator.”
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