Microgrid Business Models To Converge In Time

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Originally published on Sustainnovate.
By Henry Lindon

Report: Diversity Of Microgrid Business Models Likely To Lessen

While there are currently a notable diversity of microgrid business models — owing to wide diversities of application, and also to differing policy landscapes — these will converge over the coming years, according to a new report from Navigant Research.

The new report — Emerging Microgrid Business Models — explores the implications of 10 different emerging business models for the microgrid market, thereby “providing insight on the strategies, maturity, and financial opportunities attached to each development pathway.”

“There is no single dominant microgrid business model, given the diversity of application segments and regulatory landscapes in different regions of the world,” stated Peter Asmus, principal research analyst with Navigant Research. “Yet changes in the marketplace, including the Power Purchase Agreement (PPA) and the prevalence of software as a service, are pointing in the direction of a few models as likely to become more common over time.”

Here’s more via a press release:

The majority of the microgrids operating today have been pilot projects or experiments, and the industry is now moving into the next phase of project development. According to the report, the key to future growth rests with greater flexibility in regulation and public policy that, in turn, are spawning business model innovation from market players both large and small.

…The study explores 10 different business models being applied to this market today. It also provides an analysis of how different microgrid market segments gravitate toward different development strategies that reflect preferred resource mixes, existing contracting vehicles, and lessons learned from adjacent markets such as solar PV and energy storage. Tables included in the report highlight which of these models are being applied to different microgrid markets, as well as the relative maturity and financial opportunity attached to each development pathway.

A free Executive Summary of the report can be found here.

Image by Pika Energy


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