3Q 2020

COVID-19: Which Microgrid Segments Benefit - Which Suffer?

COVID-19 has affected the economy in many unforeseen ways. Besides a shock to business as usual that rippled through the global economy, one of its most visible impacts on the energy industry was a steep drop in demand (and corresponding price) for oil. But how has COVID-19 affected electricity markets and, more specifically, emerging digitization platforms such as microgrids? What fresh opportunities are presenting themselves in the microgrid space due to COVID-19? How should the microgrid solution ecosystem plan accordingly?

There are short- and long-term ramifications, but discernable evidence points toward overall double-digit growth in microgrids despite a severe global recession. Yet, that growth will be characterized by uneven impacts on different market segments and the desirability of different distributed energy resources (DER) options. 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. The pandemic is just another in a growing list of global disruptions to business as usual, including climate change (and resulting extreme weather), wildfires, and increased terrorist attacks on public infrastructure.

This Guidehouse Insights report examines 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.

Pages 19
Tables | Charts | Figures 4
  • How has COVID-19 affected the microgrid market to date?
  • How did Guidehouse Insights modify its utility microgrid forecasts in light of COVID-19?
  • Which microgrid segments might benefit and why?
  • Which microgrid segments might suffer and why?
  • What about regional variations in near-term deployments?
  • Will other DER platforms take away business from the microgrid platform?
  • Microgrid project developers
  • Utilities
  • Energy storage purveyors
  • DER asset manufacturers
  • Smart grid software firms
  • State regulators
  • Investor community




COVID-19 Affects Microgrid Market Segment Dynamics

Global Economic Outlook Remains Uncertain with Anticipated Setbacks

Case Study: Utility Microgrid Growth

Some Microgrid Market Segments Remain Strong

Energy Storage Can Be a Market Barometer

Examining the Pros and Cons of Selected Microgrids Segments Under COVID-19

Microgrid Segments Emerging as Winners

Healthcare Facilities Benefit from COVID-19

Data Centers Face Increasing Demands

Modular Microgrids Could Make Up the Majority

Clean Energy Microgrids Driven by COVID-19 Shift

Microgrid Segments Suffering from COVID-19 Impacts

Selected C&I Customers Hesitant to Invest in Long Payback Projects

Community Microgrids More Difficult to Bring Online

Hotels and Hospitality Industry Bear the Brunt of Pandemic-Related Challenges

Remote Residential Energy Access Microgrids Might Become Less Attractive

The Pandemic Shapes Regional Microgrid Prospects

Competing DER Platforms

Microgrid Stakeholders Should Refocus Business Plans

Look for Projects that Support Vital Medical and Other Fundamental Infrastructure Needs

Focus on Market Segments that Benefit from Shelter at Home, Social Distancing, and Remote Employee Trends

Choose Cleaner DER Assets for Microgrid Projects

Seek Adjacent Market Opportunities with DER Assets such as VPPs

  • Annual Total Microgrid Power Capacity and Revenue by Region, World Markets: 2020-2029
  • Total Microgrid Capacity by Market Segment, World Markets: 1Q 2020
  • Planned Microgrid Capacity by Market Segment, World Markets: 1Q 2020
  • Selected DER Capacity by Technology, World Markets: 2020
Choose a License Type
$1,850 USD
$2,775 USD