Microgrid systems to gross $1.7 billion by 2016, says report

• 13 years ago (2010-12-16)
• Junior Isles

North America 1021 Renewables 776

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Microgrids are set to gross $1.7 billion by 2016, according to a new report on the sector by Pike Research. Microgrids use smart grid technology to control distributed power generation and energy storage on smaller localised grids, separate from the utility power grid.

There are more than 140 microgrid projects around the world totalling more than 1.1GW of collective capacity, according to the report. They are predicted to see a 64 per cent annual growth rate over the next five years, increasing from $144.2 million in 2011 to $1.7 billion by 2016.

A more aggressive forecast, that assumes complete regulatory, industry and public policy cooperation, sees microgrid revenues reaching $3 billion.

Microgrids use several energy sources to generate power, from fossil fuels to renewable sources such as wind and solar. The benefits are largest for commercial and industrial sites, university campuses, the military and remote communities.

The problem, according to the report, is that only a few fully commercialised microgrids with significant generation capacity are actually online in North America – the world’s top market for the technology.

The main hurdle, according to the report, is regulatory bodies that are fixated on centralising power distribution infrastructure. It is also problematic that the US has yet to implement a carbon regulation regime and has poorly spent stimulus funds on easing utility companies’ costs rather than creating new jobs, according to Pike.