BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research analyzes the global market opportunity for utility distribution microgrids (UDMs), including global market forecasts for capacity and implementation revenue through 2023.
In the last 2 years, market activity around microgrids owned and operated by utilities, or UDMs, has expanded rapidly. Although they still represent a small slice of the overall microgrid pie, utility deployments and investigation into this emerging market represent a significant investment opportunities for both the regulated and unregulated business units of utilities. Click to tweet: According to a new report from Navigant Research, global UDM implementation revenue is expected to grow from $2.4 billion annually in 2014 to $5.8 billion in 2023, under a base scenario.
“Rather than viewing microgrids as a threat, due to intentional islanding and/or the effects of shrinking customer load on long-term revenue projections, a small but growing number of utilities view UDMs as the next logical extension of their efforts to deploy smart grid technology,” says Peter Asmus, principal research analyst with Navigant Research. “It is clear that a growing number of utilities are investigating their options in this space, weighing the pros and cons of different business models.”
The largest surge in growth has come in public power, grid-tied UDMs, according to the report. Less encumbered than other types of UDMs by regulatory obstacles and potential conflicts between customers and shareholders, public power UDMs span a wide array of projects, ranging from smaller municipal systems that encompass an entire utility system to large nationalized grid projects designed to integrate large-scale renewable generation in the Asia Pacific region.
The report, “Utility Distribution Microgrids,” analyzes the global market opportunity for UDMs in three key segments: investor-owned utility (IOU) grid-tied, public power grid-tied, and public power remote. The report provides an analysis of the significant market issues, including policy and technology drivers and implementation challenges, associated with UDMs. Global market forecasts for capacity and implementation revenue, broken out by segment, region, and scenario, extend through 2023. The report also examines the current composition of and key technologies related to UDMs, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals provide services that extend from expert and advisory work through implementation and outsourcing. The firm combines deep technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism to address clients’ needs in highly regulated industries including Construction, Energy, Financial Services and Healthcare. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, “Utility Distribution Microgrids,” is a summary and reflects Navigant Research’s current expectations 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.