The North America Virtual Power Plant Market would 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 would continue to be a dominant market till 2031; thereby, achieving a market value of $4,792.5 million by 2031. The Canada market is experiencing a CAGR of 23.9% during (2024 - 2031). Additionally, The Mexico market would 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.
Free Valuable Insights: The Virtual Power Plant Market is Predict to reach USD 18.97 Billion by 2031, at a CAGR of 21.8%
Based on Technology, the market is segmented into Demand Response, Distributed Energy Resource, and Mixed Asset. Based on End Use, the market is segmented into Industrial, Commercial, and Residential. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.
By Technology
By End Use
By Country
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