Microgrid-enabling technologies – including diesel and natural gas generators, solar photovoltaic power, distributed wind power, energy storage systems and fuel cells – are expected to comprise a $26 billion market by 2023, growing from $5.5 billion annually in 2014, according to a new report from Navigant Research.
Dramatic change is occurring in the microgrid market, as a greater emphasis is being placed on the economic value that these systems bring to the overall power grid, the report says. At the same time, new business models, designed to support full commercial deployment of microgrid systems, are being investigated and implemented.
While distributed generation (DG) is the most prominent component of the microgrid technologies examined in this report, the value of advanced energy storage has been recognized by governments and regulators in key markets, Navigant says. Advanced energy storage is expected to represent the single largest investment category among microgrid technologies in 2023. At the same time, DG investments as a whole are on track to remain the largest segment, Navigant says.
‘Microgrids are emerging as a global phenomenon,’ says Peter Asmus, principal research analyst with Navigant Research. ‘These systems offer compelling features, including the ability to isolate themselves from the utility distribution system during power outages, as well as a high capacity to integrate diverse distributed energy resources, such as wind, solar PV and conventional generation from diesel generators.’
An executive summary of the report is available here.
For more information on how solar, wind, storage and conventional generation combine to produce effective hybrid energy grids, visit the Hybrid Energy Innovations event website here.