Rising Demand for Enhanced Microgrid Connectivity With Affordable and Clean Energy Storage Will Propel the Microgrid Market Growth: IndustryARC

USA - English

• India - English

HYDERABAD, India, June 24, 2019 /PRNewswire/ -- The microgrid market is driven by the improved DER (distributed energy resources) technologies such as micro turbines, combustion turbines, hybrid system, wind system and others. These technologies can integrate with microgrid and reduce carbon footprints significantly as compared to conventional grid. Moreover, several government initiatives are accelerating the demand for microgrid technology. For instance, as per 2016 Paris agreement, India has been given a target to reduce the emission intensity around 33-35% by 2030 below 2005 levels. Additionally, the evolution of IoT based platform are also increasing the ability of microgrid system. IoT enabled microgrids are convenient for utilities to track real-time energy consumption. Similarly, the demand response (DR) market is expected to grow by more than 10% CAGR during 2019-2025, due to rising government initiatives for achieving optimum energy utilization. The overall rapid growth in DR market will create opportunities for microgrid system.

The Microgrid market is poised to grow at a rapid pace owing to a wide range of applications in utilities and healthcare sector. The solar and wind based power generation has been accelerating the requirement of microgrids, as these energy sources can be integrated with microgrid in easy and economical manner. The growing demand for renewable energy is the major driving factor for the growth of microgrid market. The installed base of renewable energy is expected to reach approximately 1,731GW by 2021 more than 10% CAGR during 2018-2021. In the latest developments, in April 2019, ABB, an automation tech company with Rolls-Royce will introduce global microgrid cooperation, where they will offer microgrid based solution for utilities, commercial and industrial establishments. Similarly, Healthcare is another opportunistic sector for the growth of the microgrid market. The World Health Organization considered microgrid as an advantageous option to power health institution. Moreover, the healthcare industry being highly regulated industry need to follow strict power back up regulations. Microgrid provides an economical option for healthcare sector to provide backup power in cost effective manner. In 2018, Kaiser Permanente, an American healthcare company showcase their hospital solar-storage microgrid demonstration, which shows that hospital improved its operational efficiency by 20%. One of their medical center named Kaiser Richmond stands to save an additional 2.63-MWh of energy per year, which shows the annual savings of $394,000.

To access / purchase the full report browse the link below

https://www.industryarc.com/Report/16322/microgrid-market.html

In the Americas, the U.S., Canada, Brazil, Mexico are the major cities that are mostly using microgrid in order to ensure continuous power supply. The   power utilities in the U.S. and Canada are facing serious challenges to provide reliable power for consumers due to aging infrastructure. The government are instructing these countries to integrate smart microgrids that can operate autonomously from main grid and reduce the electricity shortage. Furthermore, Latin America is one of the most emerging markets for smart microgrid investment owing to their major manufacturing capabilities and to reduce GHG as well. Moreover, various initiatives taken by the U.S. military is also likely to bring new opportunities for microgrid market in the country. One such initiative was Smart Power Infrastructure Demonstration for Energy Reliability and Security (SPIDERS). This program aimed to promote the modern power architecture in the U.S. to provide power to critical facilities. These factors jointly are significantly driving the microgrid market growth in America, which holds more than 35% of regional market share.

Microgrid Market Growth Drivers

• Rise in demand for Renewable Energy Sources for Power Generation – According to the International Energy Agency (IEA), renewable sources will make up for two-third of the global power demand by 2040. In a report by International Smart Grid Action Network, IEA forecasts that 60% of the future electrification required to reach the global electricity demand by 2030 that will be fulfilled by microgrid along with other standalone systems. These are the major factors that will make a positive impact on the microgrid market over the forecast period of 2019-2025.
• Need for Reducing Carbon Footprints – According to Intergovernmental Panel on Climate Change (IPCC), annual greenhouse gas emissions including from land-use change reached 53.5GtCO2e in 2017. Globally, carbon sequestration has become an imperative action in order to control global warming but conventional methods of electricity generation led to the emission of carbon footprints. However, microgrid projects are increasingly leveraging on more sustainable resources like solar power and energy storage. To reduce the carbon footprints, microgrid is the feasible option for electricity generation that in turn will propel the market growth.
• Deployment of Microgrid for rural electrification – Approximately 1.1 billion people in the world lack access to electricity. Lack of adequate power infrastructure in rural area and difficult to set up grid due to unfavorable location are some of the key reasons behind it. Thus, microgrid is emerging as a viable option for rural electrification. Microgrid not only ensure the installation of power set up within lesser pace but also achieves low energy cost as compared to conventional grid. Thus, the microgrids can also provide an electricity to rural places at economical prices. University of California claims saving of more than $8m annually on energy costs after the adoption of microgrid.

R&D, Investments and Funding

Crescendo Power, a project investment company that focuses on meter distributed energy and microgrid systems, offers an initial $30min equity financing for commercial and industrial microgrids and distributed generation projects of 1-10 MW range. New York's Urban Future Lab, the centre of cleantech innovation in New York is offering $50,000 awards plus incubation guidance for microgrid startups and other smart grid entrepreneurial efforts. Sponsored by the New York State Energy Research and Development Authority (NYSERDA), the cleantech incubation program helps to scale new Clean Energy Incubators. The constant investment pertaining to integration of sustainable grid when coupled with innovations toward the development of cost-effective and efficient storage technologies will boost the market growth.

Get a quote of Microgrid Market Report from one of our sales representatives

https://www.industryarc.com/reports/request-quote?id=16322

The Major Players in this Market Include

The major players in the microgrid market include ABB Ltd., Eaton Corporation PLC, General Electric, Siemens AG, Exelon Corporation and other.

In September 2018, Arensis partnered with Schneider Electric to develop smart microgrid systems. Both companies will jointly develop a blockchain Application Programming Interface (API) platform for ENTRADE IO.

Conclusion

The emergence of advanced technology like DER and rising government initiatives to optimize the power utilization are expected to create new opportunities for microgrid market. Additionally, major demand for microgrid is expected from rural areas, where the conventional power infrastructure is limited due to remote locations. Besides that, microgrid market remains a vibrant market in North America and APAC, due to lack of grid infrastructure, which is creating opportunities for microgrid market. Moreover, the overall microgrid market growth is estimated to be 12% during the forecast period 2019-2025. Additionally, growing adoption of renewable resources will be one of the major reasons for the growth of microgrid market.

About IndustryARC:

IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.

Media Contact:
Mr. Venkat Reddy
Sales Manager
Email: [email protected]
Contact Sales: +1-614-588-8538

SOURCE IndustryARC