Market drivers include grid modernization and decarbonization goals, the rise of the energy prosumer, technological advances, and supportive policies and regulations
BOULDER, Colo., Jan. 19, 2023 /PRNewswire/ -- A new report from Guidehouse Insights analyzes the growth of grid-interactive buildings engaged with three primary technologies: demand response (DR), solar power generation, and battery energy storage.
In the past, buildings simply consumed energy and grid operators adjusted supply to meet energy demand. Today, the proliferation of distributed energy resources (DER), such as onsite solar PV, battery storage, and grid-connected appliances (e.g., thermostats and water heaters), allow buildings to have two-way interactions with the grid. According to a new report from Guidehouse Insights, the number of grid-interactive buildings participating in DR, generating solar power, and equipped with battery energy storage combined worldwide is expected to increase from 67.9 million in 2022 to 202.5 million in 2031, at a compound annual growth rate (CAGR) of 12.9%.
"Digitalization and technological advances have transformed the ways that buildings interact with the electric grid," says Wendy Davis, senior research analyst with Guidehouse Insights. "With these technologies, building owners have greater control and flexibility over their energy generation and consumption and are incentivized to provide benefits to the grid, like shedding or shifting loads during periods of supply constraint."
Several market conditions are driving increased building-to-grid (B2G) integration, including grid modernization and decarbonization goals, the rise of the energy prosumer, technological advances that have made enabling hardware and software readily available, and supportive policies and regulations. Nonetheless, this market faces several challenges, including uneven technology maturity and adoption, relatively low consumer awareness and acceptance, incumbent energy business models and policies, and concerns about equipment interoperability and cybersecurity, according to the report.
The report, Building-to-Grid, analyzes the global building stock interacting with the electrical grid through participation in demand response, solar power generation, and battery energy storage. Market drivers and barriers are discussed in relation to the motivations of diverse stakeholders, including building owners, utilities, regulators, and equipment vendors. Global market estimates of the number of grid-interactive buildings, segmented by building group (commercial, institutional, and residential) and global region (North America, Europe, Asia Pacific, and Rest of World), extend through 2031. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has over 16,500 professionals in over 55 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.
* The information contained in this press release concerning the report, Building-to-Grid, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]
SOURCE Guidehouse Insights
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