According to a recent report from Navigant Research, worldwide investment in microgrid enabling technologies is expected to total more than $155 billion from 2014 through 2023.
States a recent report from Navigant Research that analyzes the global market for significant microgrid enabling technologies, including diesel generators, natural gas generators, fuel cells, solar PV, distributed wind, smart inverters, advanced energy storage, and others.
The microgrid market has changed significantly since 2012. For example, a much greater emphasis is now being placed on the economic value microgrids bring to the entire utility-led macrogrid. Furthermore, the value proposition for advanced energy storage has been greatly advanced by governments and regulators in key microgrid markets.
Perhaps the most noteworthy change, though, is the investigation of new business models designed to support full commercial implementation of microgrid systems.
Offering the ability to isolate from the wider electricity grid during power outages, as well as a high capacity to integrate renewable, distributed energy resources, microgrids have become a growing phenomenon in the global energy sector in the last few years.
Demand for the technologies that underlie these small, flexible systems is expected to grow rapidly over the next several years.
“Dramatic change is occurring in the microgrid market, as the economic value that these systems bring to the overall power grid becomes more and more apparent,” says Peter Asmus, principal research analyst with Navigant Research. “We expect the technologies that enable these systems to play key roles in the expansion of the microgrid sector to encompass additional technologies and services related to smart buildings, demand response, distribution and substation automation, and smart meters.”
Perhaps the most noteworthy change happening in the microgrid sector, according to the report, is the investigation of new business models designed to support full commercial implementation of microgrid systems. Key to this development will be the companies that offer some level of microgrid optimization via smart grid or smart inverter and/or power electronics advances.
The report, “Microgrid Enabling Technologies,” analyzes the global market for significant METs, including diesel generators, natural gas generators, fuel cells, solar PV, distributed wind, other renewables (micro-hydro and biomass), combined heat and power (CHP), smart islanding inverters, advanced energy storage, plug-in electric vehicle (PEV) energy storage capacity, and microgrid software.
The report provides an analysis of the market issues, including technology drivers and implementation challenges, associated with microgrid technologies.
Global market forecasts for capacity and revenue, segmented by technology and region, extend through 2023. The report also examines the basic principles and commercial time horizons for key METs, as well as the competitive landscape.
An Executive Summary of the report is available for free download on the Navigant Research website.
Investment in Microgrid Enabling Technologies is Expected to Exceed $155 Billion Through 2023; Navigant Research — December 22, 2014