Trends That Influence Microgrid Adoption in the US Explored
Guidehouse Insights State Level Connected DER Analysis Tool examines regional variations in microgrid development
A new report from Guidehouse Insights explores the trends that influence microgrid adoption in the US.
Microgrids are complex energy projects that link, integrate, and optimize a variety of distributed energy resources (DER) to achieve certain goals. Customers in all segments are increasingly investigating microgrids in the face of rising retail electricity rates, persistent grid outages from more and more frequent extreme weather events, and aggressive decarbonization goals. According to Guidehouse Insights, microgrids can generate significant value for both the end consumers directly benefitting from the system and the larger utility grid with which it is interconnected.
“As retail electricity rates continue to rise, the frequency and intensity of extreme weather events causing grid outages increases, and decarbonization goals become more aggressive, customers in all segments are investigating microgrids,” says Dan Power, senior research analyst with Guidehouse Insights. “Customer interest in installing microgrids depends on numerous factors linked to their geographic location and the system’s intended use case. Understanding these factors is crucial to facilitating continued market growth.”
Guidehouse Insights has developed a customizable connected DER analysis tool that can give those stakeholders who may be interested in entering the microgrid market, but lack familiarity with it, a high level introduction to macroeconomic trends having an impact on the market. Inputs can be adjusted to reflect different business strategies and anticipated revenue streams of microgrid systems, and the output is a ranking of all 50 states plus the District of Columbia according to how favorable each one is for microgrid investment and development. The inputs were selected to cover a range of factors that influence customer adoption strategies for microgrids, according to the report.
The report, Investigating US State Level Macroeconomic Trends That Influence Microgrid Adoption, outlines the US state level connected DER analysis tool developed by Guidehouse Insights to examine the regional differences in microgrid adoption. It details the methodology and input criteria for the tool and then provides example inputs and outputs for three different types of microgrid systems. Commentary on the output is provided as are recommendations for new stakeholders looking to enter the microgrid market. An executive summary of the report is available for free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Investigating US State Level Macroeconomic Trends That Influence Microgrid Adoption, 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.