According to a new report from global growth partnership company Frost & Sullivan, microgrids are primed to transform the distributed energy resources and energy storage systems market. The causes include significant price declines in both distributed renewable power and battery technologies and increased technological advancements in control and energy management systems. The systems have had an output of highly reliable, efficient, flexible, renewable and “islandable” microgrid networks embedded with advanced smart grid technologies.
"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," says Frost & Sullivan Energy and Environment Senior Industry Analyst Ross Bruton. "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."
North America accounts for nearly 50% 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.
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 website, is part of Frost & Sullivan’s Grids Growth Partnership Service program. To view it, please click here.