Global deployment of microgrids to see an annual growth rate of 18.7% through 2031—says Guidehouse Insights

Market drivers include cost reduction of energy storage, microgrid controller upgrades, and potential energy offsets.

#1 Leading Solar Photovoltaic (PV) Industry-Focused Newswire. We Specialize in News Reports/Analysis and Cutting Edge R&D Discoveries.

Colorado — In response to emerging threats to power grids globally—extreme weather events, earthquakes, and wildfires—microgrids’ resiliency offers special value.

Microgrids can enable the integration of mixed asset fleets of distributed energy resources (DER) at the distribution grid, so they can subsequently be controlled as an ensemble.

A new report from Guidehouse Insights, which analyzes the global deployment of these microgrids, concludes that global deployment is expected to grow from 4,288.8 MW in 2022 to 20,053.9 MW in 2031 at a compound annual growth rate (CAGR) of 18.7%.

“The growth and diversity of DER propels the growth of microgrid deployments,” says Roberto Rodriguez Labastida, principal research analyst with Guidehouse Insights. “Microgrids provide a platform for the aggregation and optimization of DER to provide services of enhanced resilience and reliability. Through enhanced resiliency microgrids can be robust against emerging threats of extreme weather events, earthquakes, wildfires, and even terrorist activity.”

Multiple drivers and barriers influence the growth of microgrid deployment overall.

Market drivers include the cost reduction of energy storage, microgrid controller upgrades, an overall impetus for modular microgrids, and the potential energy offsets that remote microgrids can provide.

In contrast, the main barriers for microgrid deployments are complications with renewable energy deployments, lack of consensus on the value of resiliency, long delays incurred during microgrid interconnections, and compatibility issues, according to the report.

The report, which provides a market analysis of the global deployment of clean energy microgrids over the period 2022-2031, can be found here (Clean Energy Microgrids Market Forecast).

Derick Lila
Derick is a Clark University graduate—and Fulbright alumni with a Master's Degree in Environmental Science, and Policy. He has over a decade of solar industry research, marketing, and content strategy experience.

Canada-based clean energy transition think-tank; Pembina Institute welcomes a new Executive Director

Previous article

Solar prices up 3.4%, big shifts in equipment market share—says EnergySage Report

Next article

You may also like


Leave a reply

More in News