How large is the European market for VPP related software?

The European energy system is undergoing a revolutionary shift from fossil fuels to renewable energy sources. However, the primary challenge facing energy systems with a significant proportion of wind and solar energy is the lack of flexibility needed to offset fluctuations in power production. The most effective solution to this challenge involves aggregating flexibilities from production, demand, and available power storage within a specific grid, and then trading this flexibility. The concept of a Virtual Power Plant (VPP) – a centrally controlled aggregate of flexibility – is widely regarded as the optimal approach to implement this strategy. But what are software tools supporting VPPs and how large is market for such tools? The forthcoming ComTech Advisory study aims to analyze the landscape of Virtual Power Plant (VPP) software vendors, scrutinizing potential European customers, vendor differentiation, and overall market dynamics. What insights have already we gained so far? VPPs are usually considered in three distinct models: Production-oriented VPPs aggregating multiple renewable sources, possibly including batteries, into a singular, centrally managed virtual asset providing specific flexibility, Consumption-oriented VPPs consolidating flexible demand, serving the same purpose, with demand originating from energy-intensive industries or residential sectors, And the third category, mixed-asset VPPs, represents the… continue reading

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