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Industry Outlook

Smart Grid & Decentralized Power

The End of the Centralized Utility Model?

How VPPs (Virtual Power Plants) and distributed storage are reshaping the utility business model.

Published Oct 15, 2024
25 min read
2.8 MB
6 preview pages
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Industry Outlook

Smart Grid & Decentralized Power

The End of the Centralized Utility Model?

Oct 15, 2024

Executive summary

Virtual Power Plants are now competing directly with peaker plants in major markets. The grid is becoming a two-way street.

Key findings

1

VPP capacity to triple by 2027.

2

Residential storage attach rates hitting 40% in key markets.

3

Utilities shifting to 'Platform' business models.

4

Cybersecurity risks rising with connectivity.

Table of contents

The Rise of the ProsumerPage 5
VPP EconomicsPage 12
Utility Business Model EvolutionPage 20
Policy RecommendationsPage 28

Methodology

Market modeling and regulatory analysis of US and EU power markets.

Data sources

FERC, ENTSO-E, Utility Filings

About the author

WC

Wei Chen

Energy Storage Director

Expert in clean energy markets with 10+ years of institutional research leadership.