Colorado — A new report from Navigant Research examines trends driving the development of blockchain applications for remote and grid-connected microgrids, providing global forecasts for regional and technology segments, through 2028.
Increasingly, microgrid vendors and energy blockchain vendors are exploring use cases that tie the two technologies together.
While blockchain is an emergent technology still in the early stages of development and commercialization, its characteristics show potential in addressing key pain points related to the financing and operations of grid-connected and remote microgrids.
According to a new report, the global market for blockchain applications in remote and grid-connected microgrids is expected to exceed $1.2 billion by 2028, experiencing a compound annual growth rate (CAGR) of 67.8% from 2019-2028.
“For grid-connected microgrids, low friction, smart contract-driven transactions can open new revenue streams for service providers, aggregators, and distributed energy resources (DER) owners – and potentially play a future role in grid automation,” says Johnathon de Villier, research analyst with Navigant Research. “In remote microgrids, blockchain-based models for asset finance and ownership can help fund microgrid deployments for energy access and create a foundation for future investment.”
According to the report, Europe and North America are early centers of development and pilot deployment for blockchain applications in microgrid systems. These regions are expected to remain the first- and second-ranked markets through the forecast period despite strong growth in Asia Pacific.
The report, Blockchain Applications for Remote and Grid-Connected Microgrids, analyzes trends driving the development of blockchain applications for remote and grid-connected microgrids across five geographies (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) and two microgrid technology system types (remote and grid-connected). It also includes a survey of key market barriers and drivers for the development of blockchain technology in microgrid systems.