Wood Mackenzie: Virtual power plant growth slower than expected

Ben Hertz-Shargel of Wood Mackenzie recently spoke to the Financial Times about his 2025 virtual power plant (VPP) report. According to the report, VPP capacity has grown 13.7 per cent in 2025, a much smaller rate than the 33 per cent increase in the number of new programmes and companies that have deployed the technology. Ben said the reason for the slower than expected growth was utilities often create VPP pilot programmes that tend to be limited to a certain number of participants. There are also barriers in certain markets that prevent residential and small commercial customers from participating. Read more: https://okt.to/yLKBCM

Ben Hertz-Shargel of Wood Mackenzie recently spoke to the Financial Times about his 2025 virtual power plant (VPP) report. According to the report, VPP capacity has grown 13.7 per cent in 2025, a much smaller rate than the 33 per cent increase in the number of new programmes and companies that have deployed the technology. Ben said the reason for the slower than expected growth was utilities often create VPP pilot programmes that tend to be limited to a certain number of participants. There are also barriers in certain markets that prevent residential and small commercial customers from participating. Read more: https://okt.to/MVO3ov

Ben Hertz-Shargel of Wood Mackenzie recently spoke to the Financial Times about his 2025 virtual power plant (VPP) report. According to the report, VPP capacity has grown 13.7 per cent in 2025, a much smaller rate than the 33 per cent increase in the number of new programmes and companies that have deployed the technology. Ben said the reason for the slower than expected growth was utilities often create VPP pilot programmes that tend to be limited to a certain number of participants. There are also barriers in certain markets that prevent residential and small commercial customers from participating. Read more: https://okt.to/2BsDuS

Ben Hertz-Shargel of Wood Mackenzie recently spoke to the Financial Times about his 2025 virtual power plant (VPP) report. According to the report, VPP capacity has grown 13.7 per cent in 2025, a much smaller rate than the 33 per cent increase in the number of new programmes and companies that have deployed the technology. Hertz-Shargel said the reason for the slower than expected growth was utilities often create VPP pilot programmes that tend to be limited to a certain number of participants. There are also barriers in certain markets that prevent residential and small commercial customers from participating. https://lnkd.in/gm9T5k_8

Virtual power plants are headlining the Financial Times's Energy Source this week. Exciting to see the steady march towards mainstream for this resource model, even if it is driven by an increasingly dire outlook on energy affordability. For those who can't see behind the paywall, the article highlights the impressive results this past summer from Sunrun and Tesla's enormous residential VPP in California, as well as Gov. Newsom's vetoing of several bills that would have shored up VPP incentives in the state. It also highlights key findings from Wood Mackenzie's recent NA VPP market report, including how 13.7% GW capacity growth has lagged more than 33% growth in other market activity indicators, and that this is due in part to utility program caps and wholesale market barriers to small customers (which survive FERC Order 2222 implementation). https://lnkd.in/e6r8tEMk

AI won’t just drive new demand—it’ll reshape how we balance it. Virtual power plants are the natural counterpart to an AI-orchestrated grid: intelligent, adaptive, and decentralized.

Using our existing transmission and distribution system more efficiently is the only way to reduce electricity bills by 20% by 2030s. If we don’t figure out how to fully scale up virtual power plants and grid enhancing technologies, electricity generation could go to zero cost and electricity bills would still go up.

Ben Hertz-Shargel of Wood Mackenzie recently spoke to the Financial Times about his 2025 virtual power plant (VPP) report. According to the report, VPP capacity has grown 13.7 per cent in 2025, a much smaller rate than the 33 per cent increase in the number of new programmes and companies that have deployed the technology. Ben said the reason for the slower than expected growth was utilities often create VPP pilot programmes that tend to be limited to a certain number of participants. There are also barriers in certain markets that prevent residential and small commercial customers from participating. Read more: https://okt.to/uyWq6L

Learn how utility program leaders can leverage advanced planning and analytics to effectively manage the surge in electricity demand and drive sustainable growth. https://okt.to/EhUX18

"As Artificial Intelligence (AI) drives surging electricity demand, policymakers across the country are struggling to respond, often by restricting data centers or saddling utility customers and taxpayers with costly upgrades. A new Wall Street Journal op-ed co-authored by Travis Fisher, director of energy and environmental studies at the Cato Institute, and Glen Lyons, founder of Advocates for Consumer Regulated Electricity, highlights how New Hampshire just approved an elegant alternative: HB 672, a one-page law that clears red tape for off-grid electricity providers. The reform opens the door to competition, faster project development, and innovative solutions to meet energy needs. The authors argue this could re-create the fierce competition and rapid innovation that built America’s electricity sector in the first place." https://lnkd.in/gJvWzd5B