Microgrid growth forecast: Good but not great
By: SGN Staff
Quick Take: Don't be fooled by the breathless reports of "staggering growth" at the bottom of this market research press release. Yes, the microgrid sector is finally taking off. But it is starting from a very small base. What's more, the 17% compound annual growth rate (CAGR) is good, but nothing like the 25%+ we saw in smart meters for a few years.
And what's more, this firm seems to be using linear extrapolations, assuming today's conditions will continue on indefinitely. In reality, microgrids will hit some growing pains, especially as they expand from today's specialty markets towards the mainstream. That's when we'll need new regulatory models to pay for the costs of interconnecting and managing myriad microgrids into a coherent system. And regulatory changes never go smoothly.
For a further discussion of the business model issue, jump to the discussion of whether microgrids will destroy traditional utilities, an excellent article from experts at the Rocky Mountain Institute that outlines the potential and the pitfalls. - By Jesse Berst
Microgrid market forecast
To provide tailored, efficient, and reliable energy services to the end users, microgrid employs and integrates a wide range of distributed energy technologies such as generation, storage and advanced controls, metering and communications into a controlled system that manages energy generation, transmission, distribution, and usage on a small scale as compared to the conventional macrogrid.
The report analyzes the global microgrid market and presents detailed insights of the market by technology, by characteristics, by application, and by geography. Besides, detailed discussion on the drivers, restraints, and opportunities of the market is also presented.
Market by Technology - The market by technology is further segmented under the following headings: by components and technological trends. Market by components presents the market analysis for key components such as batteries and storage system, power inverter, Smart meter and switch gear. The section also discusses the market for CHP technologies-microturbine and reciprocating engine. Microturbine is currently the largest CHP market by technology while Reciprocating engines are expected to grow at a higher rate during the forecast period.