1. Virtual Power Plant (VPP) integrated capacity of Vehicle to Grid (V2G) set to surpass energy storage assets by 2040, according to Rethink Energy report.
2. VPP technology seen as crucial for future power grids due to its ability to control and manage a variety of assets without the need for physical infrastructure.
3. Growth of VPPs expected in the US, EU, China, and Australia by 2030, with primary obstacles being regulatory, software compatibility, consumer sentiment, and financial incentives.
The forecast by US consultancy Rethink Energy predicts that the integrated capacity of vehicle to grid (V2G) technology in virtual power plants (VPPs) will exceed that of stationary energy storage assets by 2040. VPPs are seen as the core of future power grids, providing flexibility and reliability.
While stationary batteries will still have a bigger role on the grid in day-to-day operations, V2G technology will be crucial during emergencies when EV batteries need to discharge onto the grid. In China, the number of EVs on the road is expected to increase significantly by 2040, driving the demand for V2G technology.
VPPs are expected to become a major segment of power grids in the US, EU, China, and Australia by 2030, with smart technology enabling the incorporation of various generation, storage, and demand response assets. Domestic markets will be the primary space for VPPs, especially as EVs become more widespread.
Challenges to VPP growth include regulatory barriers, software compatibility, consumer sentiment, and the financial incentives for VPP structures. Ultimately, the expansion of VPPs will depend on strategic decisions by authorities and market conditions, with a focus on integrating intermittent generation and maximizing the role of batteries in the grid.