We've covered much of this on the radio side. Demand response, distributed generation, proliferation of renewables all deeply change the energy market. Those changes will be very positive for us as consumers.
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An aggregated fleet of distributed energy resources would provide high value to the grid distribution system. Thus, leading to energy efficiency and power savings.
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The studysegments the virtual power plant market on the basis of technology such as demand response, distributed generation, and mixed asset. The demand response segment is projected to dominate the virtual power plant market. This is mainly due to various advantages that it provides such as peak load management and earning incentives by participating in demand response program. The U.S. is the largest market for demand response where in companies like EnerNOC, Inc. pays the owners of commercial and industrial buildings to reduce power consumption when the grid is overburdened, or to avoid the peak power prices.
Health safety concern related to radio frequency exposure could be a restraint of the virtual power plant market which might lead to decline in profit. Additionally, RF emissions from smart meters are within the U.S. Federal Communications Commission (FCC) limits. However, some campaign groups (such as Stop Smart Meters U.K.) in both the U.K. and the U.S. believe smart meters to be unnecessary health and security risks. Hence, these uncertainties with respect to smart meters would hinder the virtual power plant market growth.
Leading players in the virtual power plant market include ABB Ltd (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), EnerNOC, Inc. (U.S.), Comverge (U.S.), Limejump (U.K.) and Flexitricity (U.K.). Contracts and agreements was the strategy most commonly adopted strategy by the top players, constituting 58% of the total developments from 2013 to 2016. It was followed by new product developments, expansions and investments, and mergers & acquisitions.