BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research examines the potential revenue streams available to distributed renewables generation assets in front of the meter using virtual power plants (VPPs).
With the decline of feed-in tariffs and net metering, distributed renewables providers are exploring new ways to provide value through these installations. Energy storage systems can help, but because they are still relatively expensive, a software-based platform that matches supply and demand in real-time is a promising alternative. Click to tweet: According to a new report from @NavigantRSRCH, the aggregation of distributed renewables assets into mixed-asset VPPs can help provide value to distributed renewables providers.
“The aggregation of distributed intermittent renewables is still relatively new—currently, only commercial and industrial installations are targeted, which are aggregated mostly through fee-based trading services solutions and are only sparsely used to provide ancillary services,” says Roberto Rodriguez Labastida, senior research analyst with Navigant Research. “In the residential market, aggregation is used mostly as a marketing tool and offered alongside other services like system sales and installations.”
In the near future, however, better resource forecasting, cheaper communications, and larger project portfolios are expected to help reduce the risk of participating in these markets. At home, aggregation becomes more attractive when other energy assets like batteries, electric vehicle charging, and connected HVAC are also managed by a VPP. With these assets and the generation system, the VPP can provide both self-consumption optimization and participate in all the electricity markets, according to the report.
The report, Distributed Renewables Aggregation Strategies in VPPs, explores the potential revenue streams and other sources of value available to distributed renewables generation assets in front of the meter using VPPs (not considering those available through load management). It also explores the aggregation services and the solutions that are being developed around them. Navigant Research focuses on deregulated markets (also known as consumer choice markets) in this report due to their transparency, but the analysis and recommendations are valuable to players working in regulated markets as well. The report also examines the key challenges related to the implementation of renewables aggregation strategies and provides case studies of VPP-enabled renewables business models. 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, Distributed Renewables Aggregation Strategies in VPPs, 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.