According to a research report by the market research and strategy consulting firm, Global Market Insights, Inc, the Microgrid Market will exceed $19 billion by 2024.
In an era where distributed energy sources are continually promulgated in power networks, microgrid market stands to gain remarkable prominence, given the systems’ exceptional credibility of ensuring reliable operation in distributed grids with robustness and high flexibility. As the energy demand in conjunction with the environmental concerns have increased since the past decade, experts believe, decentralized electricity supply through LT lines might not be an optimal solution to address the requirement, especially across remote areas. In fact, with the increasing penetration of renewable energy sources in mainstream electricity supply, the operational reliability of the grid network has become an intricate issue for the power giants. In a bid to address this critical aspect, eminent companies are highly banking on microgrids for a seamless integration of distributed generation systems into the network, ensuring highly efficient and reliable power delivery. Therefore, it goes without saying that the changing trend along with the dire necessity of reducing reliance on fossil fuels has provided a significant impetus to microgrid market.
Having recognized the stupendous potential of microgrid network in the renewable energy cosmos, various government entities of major economies are making rigorous efforts to exploit its maximum utilization, which, quite overtly is leaving a po0sitive influence on the overall microgrid industry share. This is quite evident from the massive number of microgrid projects that are presently operational across the globe. According to some of the trusted reports, more than 1840 projects that represent a power capacity of almost 19280 MW are under development worldwide, with a proposed plan of over 170 new projects reported to come onboard soon. Speaking of the contribution of the regional governments, it has been observed that U.S., Europe, and China witness upper hand in the overall microgrid marketplace.
Statistics depict that under the different framework programs such as FP5, FP6, FP7, initiated by European Commission, more than 80 projects are being funded by the regional government. Add to it, Horizon 2020, EU’s flagship initiative of research and innovation program spanning for a period of 2014 to 2020, with a funding of almost $77 million, has also spurred an interest for microgrid network, leaving a perpetual impact on the regional microgrid market share. Perhaps marred by the fact that this program mainly deals with an aim of modernizing European energy grid through the integration of renewable energy sources, it is undeniable that it is bound to shed a positive light on microgrid industry share. So far, as per the record, INEA (Innovation and Networks Executive Agency) has sanctioned almost 14 projects worth almost $135 million under the canopy of the EU’s Horizon 2020 program. These figures give a clear picture of the immense growth scope of Europe microgrid market in the coming years.
Other than Europe, China is also claimed to hold a strong ground in the global microgrid industry share. The exponential increase in power consumption in tandem with the growing investment by the regional government in rural electrification development can be primarily credited for the regional market demand. For the record, presently there are over 20 large-scale microgrid projects operational in China. Looking at the promising microgrid sector, big shot investors are betting big on the regional microgrid market. For instance, recently, Capstone Turbine, the renowned California based gas turbine manufacturer has inked a deal with the Chinese Government to supply microturbine for the country’s 10 MW microgrid network. With a strong pipeline of such encouraging initiatives, China microgrid market is slated to exceed a power generation capacity of 1 GW by the end of 2024.
The microgrid concept is aptly providing a platform that is proliferating distributed electricity generation and efficient power delivery with least compromise on environmental viability. However, in this regard, it is imperative to mention that microgrid market giants have been lately facing a wide array of daunting challenges such as establishing standards for microgrid design and extensive R&D requirement. Nonetheless, in the face of the severe energy crisis that has led to a subsequent penetration of renewable energy sources, microgrid market is set to amass exceeding proceeds from both industrial and commercial applications. In terms of commercialization, Global Market Insights Inc., forecasts overall microgrid industry to exceed a valuation of $19 billion by 2024.