The global virtual power plant market is projected to reach $4.5 billion (£3.4bn) in the next six years.
That’s an increase from $762 million (£580m) last year, with demand side response technology accounting for more than three-fifths of the global market share, according to new research.
The growth of the market is to be driven by the rise in demand for renewable energy, changes in dynamic of power grids from centralised to distributed and moderating costs and easy accessibility of energy storage.
The US accounted for more than half of the global market last year, with North America expected to dominate throughout the forecast period.
However, the report from Allied Market Research adds: “Health concerns over high frequency exposure of electromagnetic and radio waves hamper the potential of the market for different end users.”