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Japan can be considered the most industrialized nation in Asia Pacific, with geographic, technology, and market dynamics all pointing toward greater reliance on renewable distributed energy resources (DER). Though the market for virtual power plants (VPPs) is nascent in Asia Pacific (see Chart 1-1), it has the potential to grow into a major hotbed of VPP innovation spanning both commercial and industrial (C&I) and residential customers. While Asia Pacific ranks third among major regions for VPPs according to Navigant Research,1 it is expected to move into second place within the decade. A series of market reforms have set the stage for VPPs and other DER management platforms such as microgrids and DER management system.
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