COVID-19 Is Expected to Create Double-Digit Growth in Microgrids Market
Stakeholders should focus on projects that support medical and infrastructure needs and segments that benefit from social distancing and remote employee trends
A new report from Guidehouse Insights examines which microgrid segments may benefit from COVID-19 and which will likely suffer, providing recommendations for future strategies.
Besides a shock to business as usual that rippled through the global economy, one of COVID-19’s most visible impacts on the energy industry was a steep drop in demand (and corresponding price) for oil. This created questions around how the pandemic is affecting electricity markets and, more specifically, emerging digitization platforms such as microgrids. Click to tweet: According to a new report from @WeAreGHInsights, there are short- and long-term ramifications, but discernable evidence points toward overall double-digit growth in microgrids despite a severe global recession.
“This growth will be characterized by uneven impacts on different market segments and the desirability of different distributed energy resources (DER) options,” says Peter Asmus, research director with Guidehouse Insights. “Furthermore, although near-term impacts include project delays in 2020 likely extending into 2021, the longer-term picture for microgrids will likely benefit from COVID-19.”
According to the report, to position for success, stakeholders in the microgrid ecosystem should look for projects that support vital medical and other fundamental infrastructure needs and focus on market segments that benefit from shelter at home, social distancing, and remote employee trends. The report also recommends choosing cleaner DER assets for microgrid projects and seeking out adjacent market opportunities with DER assets such as virtual power plants (VPPs).
The report, COVID-19: Which Microgrid Segments Benefit - Which Suffer?, analyzes which microgrid segments may benefit from COVID-19 and which segments will likely suffer. It discusses why these market trends should shape how vendors, utilities, and prosumers view near- and long-term microgrid opportunities. Guidehouse Insights then provides detailed and actionable recommendations for the microgrid industry ecosystem to adjust future strategies accordingly. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, COVID-19: Which Microgrid Segments Benefit - Which Suffer?, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.