Published on May 25th, 2017 | by Joshua S Hill0
Commercial & Industrial Microgrids Market Set To Hit 5.4 Gigawatts By 2026, Reports Navigant
May 25th, 2017 by Joshua S Hill
The global market for commercial and industrial microgrids is expected to increase dramatically over the next few years, reaching 5,389.1 megawatts annually by 2026, up from only 448.3 megawatts in 2017, according to new figures from Navigant Research.
Navigant Research published its latest report analyzing the global commercial and industrial (C&I) microgrid market this week, in which it posits that microgrids are set to experience dramatic growth. Specifically, Navigant Research concludes that the “energy technologies, networks, and business models that underpin” what they call “the Energy Cloud are poised for major growth in the coming decades,” with the “poster child for this shift to localised, resilient power systems incorporating diverse distributed energy resources (DER)” being the microgrid.
Specifically, according to Navigant, the C&I microgrid segment “is quickly maturing” as the technology grows and becomes more secure and energy managers become more comfortable with the technology. “C&I microgrids enjoys unique advantages in that clients are often fiscally sound, capital rich, and value innovation in business models,” Navigant report, adding that “reliability is highly valued, allowing project portfolios to scale rapidly, replicating commercial success within short development cycles.” As such, Navigant predict that the global capacity of commercial and industrial microgrids is expected to grow significantly over the next decade, increasing from 448.3 megawatts (MW) in 2017 to 5,389.1 MW annually by 2026.
“The C&I microgrid market has historically been slow to develop due primarily to the lack of a clear value proposition based on the return on investment for microgrids,” said Peter Asmus, principal research analyst with Navigant Research. “Today, regulations and technology trends for solar PV, advanced batteries, smart inverters, and sophisticated software controls are making cost-effective C&I microgrids an increasingly attractive option for a variety of customers.”
Unsurprisingly, therefore, implementation spending — spending on project development and the asset value of these systems — will also grow quite dramatically. Current implementation spending in 2017 sits at $1.9 billion, but is projected to grow to $18.3 billion by 2026.
Total C&I Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026