Cumulative Spending for the Energy as a Service Microgrids Market Is Expected to Reach $110 Billion Globally by 2030

The shift from less complex to more standardized microgrids offers risk-adverse investors an attractive value proposition

Jul 29, 2021

A new report from Guidehouse Insights forecasts spending in the energy as a service (EaaS) microgrid market for the world’s main regions and for primary EaaS microgrid segments through 2030.

Microgrids are gaining traction due to advances in hardware and software technologies. Potential investors are defining their roles in these markets, which are gaining significant momentum in North America and Asia Pacific, in particular. According to a new report from Guidehouse Insights, cumulative spending in the EaaS microgrid market is forecast to reach $110.5 billion globally by 2030, with Asia Pacific emerging as the clear market leader.

The combination of the commoditization of vital hardware components, especially batteries, and the incorporation of AI and other sophisticated optimization techniques for controls makes microgrids ripe for market expansion,” says Peter Asmus, research director with Guidehouse Insights. “The missing piece is less fragmented financing and dependence upon government subsidies for microgrids serving critical facilities, communities, and utilities.”

Current trends are setting the stage for new EaaS offerings in the microgrid space. The market is moving away from complexity and intense customization for every microgrid, enabling more standardized financing, because portfolios of similar scale microgrids address the perceived risks inherent in one-off projects. This standardization enables a more attractive value proposition to the financial community looking for scale, albeit in a different form than utility-scale solar or wind farms.

The report, Market Data: Energy as a Service Microgrids, provides capacity and spending forecasts across all major regions and for the following four primary EaaS microgrid segments: pay as you go (PAYG), power purchase agreements (PPAs), advanced EaaS, and energy savings performance contracts (ESPCs) and enhanced use leasing. Forecasts and analysis cover 2021 to 2030. An executive summary of the report is available for free download on the Guidehouse Insights website.

Lindsay Funicello-Paul

*The information contained in this press release concerning the report, Market Data: Energy as a Service Microgrids, 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.