BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research examines the core of virtual power plant (VPP) and transactive energy (TE) platforms, identifying potential revenue streams that could be created through the integration of both.
The concepts of VPPs and TE are similar in that they place prosumers—formerly passive consumers that now also produce energy—at the forefront of an emerging market for grid services delivered by distributed energy resources (DER). Yet, industry stakeholders must consider significant differences as policymakers accommodate new technologies, business models, and software platforms associated with power generation, control, and transmission and distribution. Click to tweet: According to a new report from @NavigantRSRCH, these two DER platforms are expected to evolve in parallel, creating new business models that will require new IT infrastructure that relies heavily on the analysis of huge volumes of data.
“The energy industry is shifting inexorably toward a more dynamic and volatile distribution network, where self-consumption and micro-trading will be the norm, whether between prosumers and the power grid or between prosumers themselves,” says Peter Asmus, principal research analyst at Navigant Research. “The disruption created by this scenario will be deep and pervade the entire energy value chain.”
VPPs could be viewed as a leading pathway to TE to meet the objectives of the Energy Cloud: providing power at high quality, on demand, and at a reasonable price. These platforms deliver greater value to the customer while also creating benefits for the host distribution utility and the transmission grid operator. According to the report, TE also enables prosumers looking to localize energy solutions in novel ways without traditional grid players, such as utilities or transmission grid operators, necessarily defining the rules of engagement.
The report, VPP Transactive Energy Revenue Streams, identifies six potential revenue stream opportunities: localized clean energy; virtual capacity; real-time demand response (DR); fast frequency regulation; smart voltage control; and big data from small sources. The report focuses on an envisioned integration of TE within VPPs and what types of services could result from such a marriage. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the firm primarily serves clients in the healthcare, energy, and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, VPP Transactive Energy Revenue Streams, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.