Utility Distribution Microgrids to Exceed $3 Billion by 2023February 08, 2015 by Jeff Shepard
Major power outages caused by extreme weather, along with the spread of distributed, renewable energy resources, have set the stage for regulatory reforms that are likely to enable both customer-owned microgrids and utility distribution microgrids (UDMs) to expand strongly in the next decade. According to Navigant Research, worldwide revenue from UDMs is expected to grow from $1.4 billion annually in 2014 to more than $3 billion in 2023.
Responding to this growth, in the coming months Navigantâ€™s Microgrid Service Offering Team will offer an exclusive study of small power grids that will bring together a high-level consortium of utilities, project developers, software and hardware providers, and other key microgrid and nanogrid stakeholders, to collaborate with industry peers in order to develop critical knowledge and lasting relationships with key partners across the small grid industry. Beginning in March 2015, this four-to-five month multi-client study will provide critical insight into this rapidly growing and uncertain market to large North American distribution utilities and their microgrid vendors and service providers.
â€œFor utilities, the emergence of this dynamic market carries profound, and possibly ominous, implications, along with opportunities,â€ says Peter Asmus, principal research analyst with Navigant Research and one of the leaders of the small grid study. â€œThere is a clear need to examine the overarching architectures and related business models for microgrids if utilities are to remain relevant in an energy future characterized by diverse, distributed energy resources.â€
Providing access to a high-level team of Navigant small grid subject-matter experts in an in-person, group setting, the study, â€œThe Future of Small Scale Microgrids & Nanogrids,â€ will provide answers to the following questions: What are the most promising economic models for financially sustainable microgrids and nanogrids? What are the key technologies (and key vendors) playing or emerging in the small-grid sector? What are the critical deployment issues and opportunities particular to small-scale grids?What are the primary microgrid/nanogrid growth drivers, markets, and segments? Participation in the study will be limited to 30 clients.