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April 30, 2024

VPPs will become the core of the future energy grid; Virtual Power Plant Forecast to 2040

VPPs will become the core of the future energy grid


Virtual Power Plants (VPPs) will become the core of the future power grid. Because there is little to no physical infrastructure required to extend their control and financial structures over an ever-broadening range of assets, VPPs will become a major segment of the US, EU, Chinese and Australian power grids by 2030, growing to incorporate a plurality of generation, storage, and demand response assets in the course of the 2030s. The pace-setters will be the liberalized, swiftly transitioning EU and Australian grids, with China and the US following behind.

We extensively interviewed VPP and microgrid owners – including Shinehub, Evergen, Xendee, Eneco, Lunar Energy, and Uplight – and our methodology was informed by our forecasts of the transmission constraints, the EV industry, and the future scale of renewable energy resources on the energy transition, including distributed solar in particular.

This report is of interest to any company looking to make its electricity usage greener and cheaper, to utilities looking to optimize their investment in transmission and distribution networks, to VPP companies themselves, and to Government institutions with a role in shaping energy transition policy.

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Rethink Energy Research

Rethink Energy forecasts the changing energy landscape and its investment possibilities, as renewables begin to take over from conventional fossil fuels