In the current digitally connected world, a reliant and resilient power source is indispensable part of any individual person, organization, business, etc., and an electric outage can cause chaos in the lives of people and the economy. Microgrids are considered one of the best solutions to provide the resilience to the electric power grid, making them more reliant relative to central grid.
A microgrid is a group of interconnected loads and distributed energy resources (DERs) with clearly defined electrical boundaries that act as a single, controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable its operations in both grid connected or islanded mode.
A microgrid can be powered by distributed generators, energy storage devices, and/or renewable energy resources like wind and solar. Depending on the energy source and how its requirements are managed, a microgrid might run indefinitely.
Between 2000 and 2020, the capacity of renewable power generation increased 3-4 times, from 754 GW to 2,799 GW, majorly due to declining costs, steadily improving technologies, economies of scale, competitive supply chains, and improving developer experience.
Innovation and low-cost finance have brought down the costs of solar PV and wind power, and they are now the most economical source of electricity in most markets. On average, new solar PV and onshore wind power cost less than keeping many existing coal plants in operation.
The cost of renewable technologies continues to fall year on year, with onshore wind energy down by 13%, offshore wind energy by 9%, and solar PV by 7%.
Global CO2 emissions from electricity generation shot up by just 9% over the last decade, despite a 23% rise in electricity demand. Renewable energy technologies met almost 65% of the electricity demand growth over the decade, led by a fivefold increase in solar PV and wind deployment.
Over the last decade, solar and wind competitiveness has increased significantly, with offshore wind and solar PV joining onshore wind in the cost range for new fossil fuel capacity and increasingly out-competing them.
Natural gas-fired power generation in the United States has been facing increased competition from renewable generation because of the record high-capacity additions to wind and solar power plants.
With around 22.5 GW of combined net wind and solar electric generating capacity additions that came online in the US between May 2020 and February 2021, renewables registered a 15% growth. The Energy Information Administration (EIA) stated that the consumption of natural gas for power generation will decline by 2% in 2023. The decline is attributed to the increasing electricity generation capacity from renewables.
Electric utilities in the United States have made investments. Electric companies have invested more than USD 285 billion in T&D since Superstorm Sandy, partially to harden the energy grid and make it more resilient to future storms, including investing in new and upgraded T&D infrastructure. One of the best ways utilities are incorporating resilience is through increased utilization of microgrids and battery storage.
According to the Department of Energy (DOE), power outages are costing the U.S. economy USD 28 billion to USD 169 billion annually. The growing energy-efficient and reliable power requirements will significantly produce tremendous opportunities for the microgrid market in the forecast period.
In Europe, microgrids are being considered to power remote communities. For instance, the ALPGRIDS project, under which six microgrids are being developed across the European alpine states to foster the local energy grids. Microgrids are also being considered for new eco-friendly housing developments in the UK.
Asia-Pacific has some of the largest population in the world which lack access to electricity. According to the SDG7 Energy Progress Report 2021, there are currently 759 million people without access to electricity, of which 20% are in Asia. With the high need for electrification, Asia-Pacific has one of the largest future microgrid capacities.
The region is already witnessing several microgrid developments. For instance, Thailand introduced a national microgrid policy in 2018, under which a pilot microgrid project was commissioned in March 2021, which serves the energy needs of around 5,000 households in the mountainous Maehongsorn Province in northern Thailand.
Southeast Asia is developing microgrid capacity at an impressive pace. Indonesia is one of the prime examples. The country has 34 provinces dispersed across 70,000 islands, and half of its population lives in rural regions. Hitherto, only 66% of the population used to have access to electricity, but now due to the development of microgrids through the programme ‘Bright Indonesia’, about 88% have access to electricity.
Australia is one of the frontrunners in the Asia Pacific region. Following the extreme fire conditions of the 2019-20 fire season, a feasibility study was undertaken to establish a new resilient energy infrastructure. As a result, the Community Microgrid and Sustainable Energy Programme was announced in May 2021.
Rural electrification projects in Sub-Saharan Africa are also on the rise. 'Beyond the Grid' is an initiative of the United States Government to make 30,000 MW of new and clean electricity available to over 60 million African households in remote and rural regions by 2030. The programme has 40 partners all over the world who have committed to invest over USD1 billion in providing renewable remote microgrid solutions for sub-Saharan Africa.
The report covers detailed profiles of major countries across the world. Each country's microgrid market analysis covers the current market scenario, market drivers, government policies and regulations, and market outlook. In addition, market size, demand forecast, and market growth rates will be provided for all regions.
The following are the notable countries covered under each region.
North America - United States, Canada, Mexico, and Rest of North America
Europe - Germany, France, United Kingdom (UK), Russia, and Rest of Europe
Asia Pacific - China, India, Japan, South Korea, Australia, Rest of APAC
Rest of the world - Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.
The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
According to the IMF World Economic Outlook published in April 2021, global growth is projected at 4% in 2022. The projection for 2022 is much stronger than the October 2020 World Economic Outlook. The growth indicates the additional financial support in a few large economies, the anticipated vaccine-powered recovery, and the continued adaptation of economic activity to somber mobility.
Due to the probable future COVID waves and the evolution of financial conditions, high uncertainty looms over this outlook. The impact of the COVID-19 pandemic on the energy industry has already been profound.
Depending upon the path of the pandemic, capital availability, and financial conditions, utilities might postpone some of their investments in upgrading the grid, in turn affecting the microgrid market demand.
Furthermore, microgrid market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.
The study examines the drivers, restraints, and regional trends influencing the global microgrid market's demand and growth. The critical elements of the microgrid industry's supply chain, its structure, and participants will also be provided in the report.
Using Porter's five forces framework, the report covers the assessment of the microgrid industry's state of competition and profitability.
The report also addresses present and future market opportunities, market trends, developments, and the impact of COVID-19 on the microgrid market, important commercial developments, industry trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players in detail.
Further, the report will also provide microgrid market size, demand forecast, and growth rates.
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A microgrid is a group of interconnected loads and distributed energy resources (DERs) with clearly defined electrical boundaries that act as a single, controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable its operations in both grid connected or islanded mode.
A microgrid can be powered by distributed generators, energy storage devices, and/or renewable energy resources like wind and solar. Depending on the energy source and how its requirements are managed, a microgrid might run indefinitely.
Benefits of Microgrids
- Improves electric power reliability
- Enhances electric resilience/recovery
- Can lower energy costs
- Clean energy promotion
- Strengthens the central grid
- Strengthens cybersecurity of the grid
Drivers
Increasing deployment of renewable energy
In the energy sector, wind and solar PV power generation technologies have spread globally at a rapid pace. According to, the International Renewable Energy Agency's (IRENA) analysis, 800 GW of existing coal fired capacity has operating costs higher than the new utility scale solar PV and onshore wind power, including the 0.005/kWh installation costs.Between 2000 and 2020, the capacity of renewable power generation increased 3-4 times, from 754 GW to 2,799 GW, majorly due to declining costs, steadily improving technologies, economies of scale, competitive supply chains, and improving developer experience.
Innovation and low-cost finance have brought down the costs of solar PV and wind power, and they are now the most economical source of electricity in most markets. On average, new solar PV and onshore wind power cost less than keeping many existing coal plants in operation.
The cost of renewable technologies continues to fall year on year, with onshore wind energy down by 13%, offshore wind energy by 9%, and solar PV by 7%.
Global CO2 emissions from electricity generation shot up by just 9% over the last decade, despite a 23% rise in electricity demand. Renewable energy technologies met almost 65% of the electricity demand growth over the decade, led by a fivefold increase in solar PV and wind deployment.
Over the last decade, solar and wind competitiveness has increased significantly, with offshore wind and solar PV joining onshore wind in the cost range for new fossil fuel capacity and increasingly out-competing them.
Natural gas-fired power generation in the United States has been facing increased competition from renewable generation because of the record high-capacity additions to wind and solar power plants.
With around 22.5 GW of combined net wind and solar electric generating capacity additions that came online in the US between May 2020 and February 2021, renewables registered a 15% growth. The Energy Information Administration (EIA) stated that the consumption of natural gas for power generation will decline by 2% in 2023. The decline is attributed to the increasing electricity generation capacity from renewables.
Some of the Other Drivers
The rising need for resilient and reliable power, declining prices of DERs, technology advancement, continued government support for distributed renewable energy adoption, and the increased need for rural electrification are some of the few factors driving the microgrid market's growth.Restraints
Microgrid systems are too expensive to install. The task of developing a microgrid or upgrading to a microgrid is capital intensive, which is acting as a major restraint on its growth.Regional Analysis of Microgrids Market
North America is the largest market for microgrids, where the US stands as a critical market. The demand for reliable power in the U.S. is driving the North America microgrid market growth. In 2021, a number of natural calamities like hurricanes and wild fires caused many problems for the already old grid infrastructure, causing power failures in various U.S. regions for long hours.Electric utilities in the United States have made investments. Electric companies have invested more than USD 285 billion in T&D since Superstorm Sandy, partially to harden the energy grid and make it more resilient to future storms, including investing in new and upgraded T&D infrastructure. One of the best ways utilities are incorporating resilience is through increased utilization of microgrids and battery storage.
According to the Department of Energy (DOE), power outages are costing the U.S. economy USD 28 billion to USD 169 billion annually. The growing energy-efficient and reliable power requirements will significantly produce tremendous opportunities for the microgrid market in the forecast period.
In Europe, microgrids are being considered to power remote communities. For instance, the ALPGRIDS project, under which six microgrids are being developed across the European alpine states to foster the local energy grids. Microgrids are also being considered for new eco-friendly housing developments in the UK.
Asia-Pacific has some of the largest population in the world which lack access to electricity. According to the SDG7 Energy Progress Report 2021, there are currently 759 million people without access to electricity, of which 20% are in Asia. With the high need for electrification, Asia-Pacific has one of the largest future microgrid capacities.
The region is already witnessing several microgrid developments. For instance, Thailand introduced a national microgrid policy in 2018, under which a pilot microgrid project was commissioned in March 2021, which serves the energy needs of around 5,000 households in the mountainous Maehongsorn Province in northern Thailand.
Southeast Asia is developing microgrid capacity at an impressive pace. Indonesia is one of the prime examples. The country has 34 provinces dispersed across 70,000 islands, and half of its population lives in rural regions. Hitherto, only 66% of the population used to have access to electricity, but now due to the development of microgrids through the programme ‘Bright Indonesia’, about 88% have access to electricity.
Australia is one of the frontrunners in the Asia Pacific region. Following the extreme fire conditions of the 2019-20 fire season, a feasibility study was undertaken to establish a new resilient energy infrastructure. As a result, the Community Microgrid and Sustainable Energy Programme was announced in May 2021.
Rural electrification projects in Sub-Saharan Africa are also on the rise. 'Beyond the Grid' is an initiative of the United States Government to make 30,000 MW of new and clean electricity available to over 60 million African households in remote and rural regions by 2030. The programme has 40 partners all over the world who have committed to invest over USD1 billion in providing renewable remote microgrid solutions for sub-Saharan Africa.
Recent Developments in Microgrid Market
- In December 2021, India announced its first green hydrogen microgrid project. It will be a standalone fuel cell based microgrid with hydrogen production using electrolyser
- In November 2021, Los Angeles city announced its plan to install one of the nation's largest EV charging stations powered by solar and storage microgrid. The microgrid will serve 7.5 MW EV charging system
- In October 2021, on behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) announced the launch of USD 50 million for Regional Australia Microgrid Pilot Programme (RAMPP) to support the microgrid pilot projects across regional Australia
- In July 2021, San Diego approved a deal with Shell New Energies US to develop and operate eight microgrids in the city
The report covers detailed profiles of major countries across the world. Each country's microgrid market analysis covers the current market scenario, market drivers, government policies and regulations, and market outlook. In addition, market size, demand forecast, and market growth rates will be provided for all regions.
The following are the notable countries covered under each region.
North America - United States, Canada, Mexico, and Rest of North America
Europe - Germany, France, United Kingdom (UK), Russia, and Rest of Europe
Asia Pacific - China, India, Japan, South Korea, Australia, Rest of APAC
Rest of the world - Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.
Top Microgrid Companies Profile
This report presents detailed profiles of key companies in the microgrid industry. In general, each company profile includes - overview of the company, relevant products and services, a financial overview, and recent developments. Some of the leading players in the report are Schneider Electric SE, General Electric, Eaton Corporation PLC, etc.The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
Impact of COVID 19 on Microgrids Market
Covid pandemic hit industries and businesses globally and the microgrid industry is no exception. The manufacturers suffered a huge setback in dispatches and order bookings. The restrictions in international markets and stringent travel curtailments resulted in a considerable loss of order bookings and aftersales services.According to the IMF World Economic Outlook published in April 2021, global growth is projected at 4% in 2022. The projection for 2022 is much stronger than the October 2020 World Economic Outlook. The growth indicates the additional financial support in a few large economies, the anticipated vaccine-powered recovery, and the continued adaptation of economic activity to somber mobility.
Due to the probable future COVID waves and the evolution of financial conditions, high uncertainty looms over this outlook. The impact of the COVID-19 pandemic on the energy industry has already been profound.
Depending upon the path of the pandemic, capital availability, and financial conditions, utilities might postpone some of their investments in upgrading the grid, in turn affecting the microgrid market demand.
Microgrid Market Segmentation and Forecast
The report dissects the global microgrid market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.Furthermore, microgrid market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.
The study examines the drivers, restraints, and regional trends influencing the global microgrid market's demand and growth. The critical elements of the microgrid industry's supply chain, its structure, and participants will also be provided in the report.
Using Porter's five forces framework, the report covers the assessment of the microgrid industry's state of competition and profitability.
The report also addresses present and future market opportunities, market trends, developments, and the impact of COVID-19 on the microgrid market, important commercial developments, industry trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players in detail.
Further, the report will also provide microgrid market size, demand forecast, and growth rates.
This product will be delivered within 5-7 business days.
Table of Contents
1. Executive Summary2. Research Scope and Methodology9. Conclusions and RecommendationsList of Tables & FiguresAbbreviationsAdditional NotesDisclaimer
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Eaton Corporation Inc.
- Schneider Electric SE
- Siemens Energy
- Engie SA
- NRG Energy Inc.
- PowerSecure International Inc.
- Ameresco
- Hitachi Energy Ltd.
- S and C Electric Company
- Duke Energy
