All Reports
4Q 2023

Interconnection Innovations

Revenue Forecasts for World Markets, 2023-2032

As the world shifts from fossil fuels toward distributed energy resources (DER) and renewable energy sources, grid interconnection applications have skyrocketed. This has resulted in a backlog of applications and significant wait times at both the transmission and distribution (T&D) levels in regions around the world, particularly in the US and Europe. To combat these wait times, innovations in the interconnection space are gaining traction through new software tools and processes. In the US, new regulations around DER provide an additional driver for the interconnection innovations market, while in Europe the ongoing war in Ukraine and resulting effort to eliminate reliance on Russian natural gas spurs further market growth.

However, interconnection processes are essential to ensuring the safety and reliability of power grids, potentially leading grid operators to be hesitant to make changes. A lack of visibility and coordination between T&D system operators can also inhibit further growth of interconnection innovations. Numerous grid software vendors offer solutions capable of streamlining the interconnection process. These solutions may be specifically geared toward interconnection or may be aimed at broader grid management while offering an avenue to speed up interconnection without sacrificing safety.

This Guidehouse Insights report examines the global market for interconnection innovations. Regional forecasts for interconnection request applications and revenue from interconnection innovations by innovation type are presented across five major geographic regions from 2023-2032. The Asia Pacific region is forecast to continue to lead the market in both revenue and interconnection request applications through 2032, and revenue from flexible interconnection is the innovation type forecast to grow the fastest across all regions.

Pages 44
Tables | Charts | Figures 21
  • What is driving innovation in the interconnection market?
  • What is preventing further growth of innovative interconnection solutions?
  • Which vendors are currently offering solutions for the interconnection market?
  • How has the interconnection process evolved?
  • Which interconnection innovations are expected to generate revenue?
  • How is revenue from interconnection innovations projected to grow in various global regions?
  • DER hardware providers
  • Grid management software providers
  • Utilities and grid operators
  • DER developers
  • Regulators and policymakers
  • Investor community

1. Executive Summary

1.1      Introduction

1.2      Market Issues

1.3      Industry Value Chain

1.4      Market Forecasts

2. Market Issues

2.1      Introduction

2.2      Market Drivers

2.2.1     Integration of Variable Renewable Energy Capacity and DER

2.2.1.1 US Transmission Interconnection Queue

2.2.1.2 US Distribution Network Interconnection Queue

2.2.1.3 European Interconnection Queue

2.2.1.4 Plug-In EV Charging

2.2.2     Technological Evolution

2.2.2.1   Hosting Capacity Analysis and Topology Optimization

2.2.2.2   Smart Inverters

2.2.2.3   Case Study: SMUD and NREL’s PRECISE Tool

2.2.3     FERC Order 2222

2.3      Barriers

2.3.1     Institutional Inertia

2.3.2     Lack of Visibility and Coordination between T&D

2.3.3     Skilled Labor Shortage

3. Industry Value Chain

3.1      Pictorial Representation of the Interconnection Process

3.2      Interconnection Process Evolution

3.2.1     Flexible Interconnection

3.2.2     Cluster Studies

3.2.3     Fast Track and Supplemental Review

3.2.3.1   Fast Track

3.2.3.2   Supplemental Review

3.3      Overview of Vendor Types in the Interconnection Market

3.3.1     Interconnection Software Providers

3.3.2     DERMS Vendors

4. Market Forecasts

4.1      Methodology

4.1.1     Market Size

4.1.2     Growth Forecasts

4.2      Global Forecast

4.3      North America

4.4      Europe

4.5      Asia Pacific

4.6      Latin America

4.7      Middle East & Africa

5. Conclusions and Recommendations

5.1      Conclusions

5.2      Three Big Takeaways

5.3      Recommendations

5.3.1     Grid Operators

5.3.2     Grid Management Software Vendors

5.3.3     DER Providers and Project Developers

6. Acronym and Abbreviation List

7. Table of Content

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

  • Annual Revenue from Interconnection Innovations by Region, World Markets: 2023-2032
  • Annual Number of Interconnection Request Applications by Region, World Markets:2023-2032
  • Annual Number of Interconnection Request Applications, North America: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, North America: 2023-2032
  • Annual Number of Interconnection Request Applications, Europe: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Europe: 2023-2032
  • Annual Number of Interconnection Request Applications, Asia Pacific: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Asia Pacific: 2023-2032
  • Annual Number of Interconnection Request Applications, Latin America: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Latin America: 2023-2032
  • Annual Number of Interconnection Request Applications, Middle East & Africa: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Middle East & Africa: 2023-2032
  • Interconnection Process
  • Fast Track and Supplemental Review Process

  • Annual Revenue from Interconnection Innovations by Region, World Markets: 2023-2032
  • Annual Number of Interconnection Request Applications by Region, World Markets: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, North America: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Europe: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Asia Pacific: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Latin America: 2023-2032
  • Annual Revenue from Interconnection Innovations by Innovation Type, Middle East & Africa: 2023-2032
Choose a License Type
$3,950 USD
$5,925 USD