$1 Trillion Market Size

Generally, the electricity managed by Virtual Power Plants accounts for 5%-20% of the total electricity consumption in their respective regions. This percentage is higher in areas with a greater share of renewable energy. According to statistics from the International Energy Agency, the total size of the global electricity market in 2022 was approximately 3 trillion USD, suggesting that the market size of global Virtual Power Plants could conservatively be estimated to exceed 100 billion USD. Additionally, the market size for energy efficiency, energy data, and carbon credits, all of which are involved in the Starpower project, is also estimated to be in the tens of billions of dollars.

Furthermore, as predicted by Elon Musk, the demand for electricity in 2045 will be three times what it is currently, which will drive a greater need for interconnected energy networks and dispatch.

Prof. Martin Green, the Father of Photovoltaics, also mentioned that "Our electricity supply system was designed for fossil fuel generators – it’s not well-suited for the energy sources of the future. That needs to change, and virtual power plants (VPP) are a way to maximize the benefits of solar."

Beyond the aforementioned revenue scale, Starpower can also bring significant economic and social benefits. According to a survey by The Economist, to achieve the global net-zero carbon goal, the global power grid will need an annual investment of 1.1 trillion USD by 2050. Virtual Power Plants and energy storage batteries can effectively reduce this expenditure. According to data from the U.S. National Renewable Energy Laboratory, Virtual Power Plants could help reduce greenhouse gas emissions by 60 million tons by the year 2050.

The business models of existing participants in the energy market still rely on traditional models requiring heavy capital and operational investment. In contrast, Starpower adopts the DePIN (Decentralized Physical Infrastructure Networks) model to build its energy network. Those who join the Starpower network are not only builders of the network but also its owners and beneficiaries. The capital expenditures (CapEx) and operational expenses (OpEx) of the Starpower network are shared among all participants, which allows the pricing of Starpower's products and services to be significantly lower than market levels.