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1Q 2022

Market Data: Microgrid Markets

Market Drivers, Barriers, Business Models, and Key Market Segment Forecasts

The role of a microgrid in the contemporary power system is vast and varied. Microgrid is not a single technology but a cluster of various technologies. There is a clear movement of energy markets toward decentralization in all the major regions of the world. Distributed energy resources (DER), including storage, are becoming a viable option for consumers due to the declining cost of DER technologies and improvement in controller performance. Advancement in digital controllers and the innovation of technologies have enabled instantaneous adjustments among a large group of DER assets. Such distributed control mechanisms can make each DER independent and act on their most beneficial operating point.

Modular microgrids are gaining relevance in the developing world markets where there is a lack of accessibility to the traditional grid. The broad remote microgrid market is the perfect space for modular systems. These places lack local engineering expertise and face logistic deployment challenges. As modular microgrids offer containerized solutions with easy operations and maintenance (O&M), high failure rate due to complex feasibility analysis phases can be avoided. Though technology advancements and the declining cost of DER technologies favor the market, lack of appropriate policy regulations will likely decelerate the growth.

This Guidehouse Insights report provides global forecasts for annual deployments of microgrid projects in terms of power capacity and project deployment spending. These forecasts are then segmented by region, application segments, and business models. All forecasts cover a 10-year period from 2022-2031.

Pages 33
Tables | Charts | Figures 35
  • What are the market and technology drivers?
  • What are the market and technology barriers?
  • What advancements have taken place in controllers?
  • What is the average duration taken by microgrids to operate?
  • What are the leading regions and segments with respect to microgrid deployment?
  • What are the existing business models in the microgrid market?
  • DER technology developers, manufacturers
  • Engineering, procurement, and construction (EPC) firms
  • Energy storage technology firms
  • Microgrid controls and software companies
  • Balance of system components manufacturers.
  • Renewable energy development financing companies
  • Government and regulatory agencies
  • Utilities
  • Investor community

1. Executive Summary

1.1      Global Microgrid Market Shifts

1.2      Key Microgrid Market Trends

2. Market Issues

2.1      Global Microgrid Market Landscape Scan

2.2      Global Technology Innovation Scan

2.3      Market Drivers

2.3.1     Declining Cost of Key DER Options

2.3.2     Microgrid Controller Functionality Upgrades

2.3.3     Modular Microgrid Movement

2.4      Market Barriers

2.4.1     Balance of System Costs

2.4.2     Controller Performance and Cost

2.4.3     No Consensus on the Value of Resiliency

2.4.4     Need for Streamlined Interconnection Procedures

2.4.5     Questions Surrounding Utility Rate-Basing of Grid-Connected Microgrids

3. Market Forecasts

3.1      Global Microgrid Market Overview

3.1.1     Forecast Methodology

3.1.2     Microgrid Peak Capacity Estimates

3.1.3     Microgrid Implementation Spending Estimates

3.2      Key Regional Trends

3.2.1     North America

3.2.2     Europe

3.2.3     Asia Pacific

3.2.4     Latin America

3.2.5     Middle East & Africa

3.3      Major Microgrid Application Segments

3.3.1     Commercial and Industrial Microgrids

3.3.2     Community Microgrids

3.3.3     Campus/Institutional Microgrids

3.3.4     Remote Microgrids

3.3.5     Utility Distribution Microgrids

3.3.6     Microgrid Business Models

4. Conclusion

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

  • Total Microgrid Power Capacity and Implementation Spending by Region, World Markets: 2022-2031
  • Total Microgrid Power Capacity and Implementation Spending by Market Segment, World Markets: 2022-2031
  • C&I Microgrid Power Capacity and Implementation Spending by Region, World Markets: 2022-2031
  • Community Microgrid Power Capacity and Implementation Spending by Region, World Markets: 2022-2031
  • Campus/Institutional Microgrid Power Capacity and Implementation Spending by Region, World Markets: 2022-2031
  • Remote Microgrid Power Capacity and Implementation Spending by Region, World Markets: 2022-2031
  • UDM Microgrid Power Capacity and Implementation Spending by Region, World Markets: 2022-2031
  • Microgrid implementation Spending by Business Model, World Markets: 1Q 2022
  • BESS Technology Cost Trends
  • Microgrid: Networks of Static DER with Points of Common Coupling
  • A Centralized vs Decentralized Control Perspective
  • Valuing RE Resiliency Increases Net Present Value and System Size
  • Total Microgrid Capacity by Region, Base Scenario, World Markets: 2022-2031
  • Total Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • Total Microgrid Capacity by Segment and Region, Base Scenario, World Markets: 2022-2031
  • Total Microgrid Implementation Spending by Segment and Region, Base Scenario, World Markets: 2022-2031
  • Total Microgrid Capacity by End-Use Categories, Base Scenario, World Markets: 2022-2031
  • Total Microgrid Implementation Spending by End-Use Categories, Base Scenario, World Markets: 2022-2031
  • Campus/Institutional Microgrid Capacity by Region, Base Scenario, World Markets: 2022-2031
  • Campus/Institutional Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • C&I Microgrid Capacity by Region, Base Scenario, World Markets: 2021-2030
  • C&I Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • Commercial Microgrid Capacity by Region, Base Scenario, World Markets: 2022-2031
  • Commercial Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • Industrial Microgrid Capacity by Region, Base Scenario, World Markets: 2021-2030
  • Industrial Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • Community Microgrid Capacity by Region, Base Scenario, World Markets: 2022-2031
  • Community Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • Remote Microgrid Capacity by Region, Base Scenario, World Markets: 2022-2031
  • Remote Microgrid Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • UDM Capacity by Region, Base Scenario, World Markets: 2022-2031
  • UDM Implementation Spending by Region, Base Scenario, World Markets: 2022-2031
  • Microgrid Capacity by Business Model,  Base Scenario, World Markets: 2022-2031
  • Microgrid Implementation Spending by Business Model,  Base Scenario, World Markets: 2022-2031
  • Microgrid Implementation Spending by Business Model and Region,  Base Scenario, World Markets: 2022-2031
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