Navigant Research Expects Virtual Power Plant and Transactive Energy Platforms to Evolve in Parallel, Creating New Business Models that Leverage Large Volumes of Data

Virtual power plants could be viewed as a leading pathway to
transactive energy to meet Energy Cloud objectives, report finds

BOULDER, Colo.–(BUSINESS WIRE)–#DER–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.

About Navigant

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.

Contacts

Navigant Research
Lindsay Funicello-Paul, +1-781-270-8456
[email protected]