Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as an increasingly valuable component of these distributed energy networks. Microgrids are typically centered around generators providing solely electricity or combined heat and power (CHP) that often run on natural gas or diesel. The addition of variable renewable generation, namely solar PV and wind, into microgrids is the primary driver of interest in ESSs. While an ESS can provide benefits by reducing fuel consumption, the ability to effectively integrate renewable generation is the key benefit provided by ESSs for microgrids.
Interest in energy storage-enabled microgrids is growing throughout the industry from many stakeholders. Several major drivers are encouraging the growth of energy storage-enabled microgrids globally, including the desire to improve the resilience of the power supply, the need to expand reliable electricity service to new areas, rising electricity prices, and innovations in business models and financing. Such innovations will likely play a key role in the expansion of the energy storage for microgrids (ESMG) market during the coming years. The most successful companies in this industry will be those that can unlock the potential of these new models to reduce the risk and upfront costs to customers. According to Guidehouse Insights, global ESMG power capacity is expected to grow from 238.4 MW in 2017 to 3,291.8 MW in 2026.
This Guidehouse Insights report outlines the key market drivers and barriers within the global ESMG market. The study provides an analysis of specific trends and market dynamics for each major world region to illustrate how different markets are taking shape. Global ESMG forecasts for capacity and revenue, segmented by region, technology, and market segment, extend through 2026. The report also briefly examines the major technology issues related to ESSs for microgrids.