by Brianna Crandall — December 28, 2016 — Microgrids are set to transform the distributed energy resources and energy storage systems market, according to a new report from global growth partnership company Frost & Sullivan. Significant price declines in both distributed renewable power and battery technologies, coupled with increased technological advancements in control and energy management systems, have created a vision of highly reliable, efficient, flexible, renewable and “islandable” microgrid networks embedded with advanced smart grid technologies.
Frost & Sullivan Energy and Environment Senior Industry Analyst Ross Bruton explained:
Tying together decentralized power production through the use of microgrid control systems, energy storage, and smart technologies allows the efficient management of growing decentralized power production volatility without substantial investments into transmission upgrades and extensions. These systems will ensure electricity supply reliability, while trading electricity to the central grid to be used for ancillary services in grid balancing. The decline in the prices of photovoltaics and storage, and the use of microgrids for remote electrification purposes, will allow for more rapid, cost-effective and renewable electrification of developing countries.
According to the report, North America accounts for almost 50 percent of the global microgrid market, driven largely by the U.S. market. The Asia-Pacific market, presenting key growth opportunities, is the second-largest market due to electrification in India and China, island grids in Indonesia, and industrial microgrids in Australia. The European Union, with the most secure electricity grids and highest penetration of smart grid technology, shows a limited need for islandable microgrid systems and is instead expected to represent a leading market for virtual power plant (VPP) solutions.
Bruton noted:
With governments setting regulations and standards for efficient interconnection and operation, players across diverse sectors are swiftly entering the market with proprietary solutions for installation and management of distributed energy resources and storage to support associated loads. Consolidation of these solutions into more standardized microgrid projects will represent one of the key vehicles to carry the market to broad-based commercialization.
The Growing Opportunity in the Global Microgrid Market: Decreasing Costs and Technological Advancements of Decentralised Power and Storage Drives report, available for purchase on the company’s Web site, is part of Frost & Sullivan’s Grids Growth Partnership Service program, which is said to offer valuable market insights on issues around power load management, electrification, isolated microgrids, islandable microgrids, non-synchronous microgrids, distributed generation, transmission and distribution network efficiency, revenue assurance, and aging infrastructure.
Readers can obtain more information on this analysis online and register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan’s thought leaders. A description of the report, along with an infographic and other resources, is available on the Frost & Sullivan Web site.
