Market Trends of Microgrid as a Service Industry
Residential and Commercial Segment to Witness Significant Growth
- The residential and commercial facilities have large, flat, and open rooftops that are well-suited for installations of solar panels that can help companies drastically cut their electric bills. The rooftop solar panel-based microgrids can not only generate clean electricity but will also provide an insulation barrier that can help in reducing summer cooling costs.
- With various government initiatives in this segment, the market is expected to witness further growth. For instance, in Jan 2020, as part of a DOE-funded program in conjunction with concurrent design, Pecan Street developed a residential microgrid called The Energy Switch. The program was a fast-paced, one-year development plan that included a two-month demonstration and it ended with the NREL conducting a third-party validation of performance.
- Moreover, the market is also witnessing strategic partnerships so as to increase their market reach and innovate their product. For instance, in April 2019, the Carlyle Group and Schneider Electric announced the enhancement of their partnership primarily to develop new and innovative infrastructure projects. The collaboration will result in Schneider Electric’s applying its capabilities in advanced connectivity and real-time insights to current and future Carlyle infrastructure and microgrid investments.
- Furthermore, the goal of this partnership is to develop a system that is capable of taking on large-sized projects such as the JFK airport modernization project that will primarily use microgrids to transform the airport to a 100% renewable energy, as well as modular microgrid-enabled energy-as-a-service solutions for commercial and industrial customers.
- The Enterprises across the globe are witnessing loss of sales owing to the power outages, which is expected to drive the demand for microgrid services in the segment as they offer a reliable solution in case of power failures also.
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North America is Expected to Hold a Significant Market Share
- The North America region is expected to hold a significant share of the market during the forecast period. The increased production rates, high-quality power requirements, and safe industrial operations are some of the factors, that are expected to drive the growth of the market. Moreover, the US Department of Energy is also empowering the development and deployment of microgrids in the country.
- The microgrids that are built on the solar and storage technology are expected to expand even more rapidly in the region as their deployment has become a part of the climate-related strategic plan at the local, state and federal levels. The US military has already deployed multiple microgrids on its military bases across the country and the Department of Defense is also actively implementing renewable-based microgrids on its multiple military bases.
- The US Navy is also expected to drive the demand for microgrids. For instance, in Dec 2019, Northern Reliability, Inc. announced that they have been selected by the Electric Power Research Institute to design and build two transportable microgrid Battery Energy Storage Systems (BESS) for the US Navy. These microgrid will primarily use solar energy and the BESS, along with the Navy's site generation, to provide emergency backup electricity to critical Navy electrical loads.
- The extreme weather conditions in the Northeastern states of US like New York and Massachusetts require an improved resistance to the power outages that microgrids can provide. The renewable energy policy has also driven microgrids in California. Moreover, California expects many more installations as the PUC is now responding to the new microgrid bill.
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