Global Deployment of Clean Energy Microgrids Estimated to Grow at a Compound Annual Growth Rate of 19% Through 2031
Market drivers include cost reduction of energy storage, microgrid controller upgrades, and potential energy offsets that remote microgrids can provide
A new report from Guidehouse Insights analyzes the global deployment of clean energy microgrids.
In response to emerging threats to power grids globally—extreme weather events, earthquakes, and wildfires—the resiliency that microgrids provide offers special value. Microgrids can enable the integration of mixed asset fleets of distributed energy resources (DER) at the distribution grid, so they can subsequently be controlled as an ensemble. According to a new report from Guidehouse Insights, the global deployment of clean energy microgrids is expected to grow from 4,288.8 MW in 2022 to 20,053.9 MW in 2031 at a compound annual growth rate (CAGR) of 18.7%.
“The growth and diversity of DER propels the growth of microgrid deployments,” says Roberto Rodriguez Labastida, principal research analyst with Guidehouse Insights. “Microgrids provide a platform for the aggregation and optimization of DER to provide services of enhanced resilience and reliability. Through enhanced resiliency microgrids can be robust against emerging threats of extreme weather events, earthquakes, wildfires, and even terrorist activity.”
Multiple drivers and barriers influence the growth of microgrid deployment overall. Market drivers include the cost reduction of energy storage, microgrid controller upgrades, an overall impetus for modular microgrids, and the potential energy offsets that remote microgrids can provide. In contrast, the main barriers for microgrid deployments are complications with renewable energy deployments, lack of consensus on the value of resiliency, long delays incurred during microgrid interconnections, and lastly, compatibility issues, according to the report.
The report, Clean Energy Microgrids Market Forecast, provides a market analysis of the global deployment of clean energy microgrids over the period 2022-2031. Clean energy microgrids are segmented based on their composition into 50%-clean energy microgrids—assets that leverage the natural gas infrastructure for delivering power, such as microturbines and fuel cells—and 100%-clean energy microgrids, which deliver power via solar, wind, and storage. Guidehouse Insights further reports on the business models that are used for deploying the clean energy microgrids over the outlook period. 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, Clean Energy Microgrids Market Forecast, 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.