Market for Microgrid Technologies to Exceed $26B by 2023
The microgrid market is changing dramatically, as much greater emphasis is being placed on the economic value that microgrids bring to the overall power grid and new business models that support full commercial implementation of microgrid systems are being investigated. According to a new report from Navigant Research, worldwide vendor revenue from microgrid enabling technologies (METs) is expected to grow from $5.5 billion annually in 2014 to $26.3 billion in 2023.
The report, “Microgrid Enabling Technologies,” analyzes the global market for significant METs, including diesel generators, natural gas generators, fuel cells, solar PV, distributed wind and advanced energy storage, among others.
Distributed generation (DG) holds the greatest market opportunity within the microgrid realm. While North America is forecast to lead the overall microgrid DG market in terms of annual vendor revenue by 2023, Europe currently leads the market with $714.2 million in revenue out of a total of $1.8 billion, or 40 percent of the total market. By 2023, the dynamics of the DG market for microgrids will have changed considerably. North America will hold a strong lead in annual vendor revenue, posting $4.9 billion, up from $599.9 million in 2014 at a compound annual growth rate (CAGR) of 26.3 percent.
There is market opportunity within the microgrid space beyond DG, Navigant says. Advanced energy storage will represent the single largest investment category among MET options by 2023 although DG investments as a whole will still be larger. The widest range of investment per megawatt is possible in the microgrid control segment. By 2023, Navigant Research expects spending on microgrid reliability, economic optimization and cyber security software will represent 10 percent of the total spend on microgrids.
- 2015 Insider Knowledge
- The Corporate Sustainability Professional's Guide to Better Data Management
- Improve Occupant Comfort & Reduce Energy Costs Through Humidity Control
- 2016 Energy and Sustainability Predictions Findings from Facilities Professionals
- How the IoT is Reshaping Building Automation
- 10 Tactics of Successful Energy Managers
- Choosing the Correct Emission Control Technology
- eBook: Five Key Considerations for Integrating Renewables into Your Procurement Strategy
- There’s Money in the Trash
- The New Energy Future - Challenges and Opportunities in Corporate Energy Management