Powered by the quest to deliver uninterrupted electricity to remote locations across the globe, microgrid market players seem to be on an expedition to bring forth a range of highly advanced networks endowed with supreme connectivity and storage that would help electrify rural and outlandish areas. In an era thriving on the notion of circumventing the deployment of fossil-fuel resources and promoting sustainability by and large, microgrid industry outlook is likely to witness a transformation at the paramount stratum. The declaration has been amply and impeccably testified by the extensive launch of these grids across numerous regions where power supply is still a luxury. For instance, Robben Island, the World Heritage Site in Cape Town, has recently witnessed the launch of an R25-million solar energy, lithium-ion battery storage microgrid. The region had been dependent on diesel since long for power generation, however, now, with the launch of this microgrid, it is expected that Robben Island would prove to be a viable exemplar to stimulate microgrid market demand. The Li-Io battery storage microgrid installation has been forecast to reduce the usage of close to 600,000 liters of carbon-emitting fuel, underlining how effectively microgrids can be used for electricity generation in fuel-powered areas, thereby benefitting the overall microgrid market outlook.
Europe Microgrid Market Size, By Power Source, 2016 & 2024 (USD million)
The contribution of governmental bodies toward microgrid industry expansion
Regional governments and regulatory bodies have a rather influential role to play in the development of microgrid market. Given that the demand for electricity and the dire need for optimized power consumption are globally prevalent issues, the trends witnessed across this business vertical have a tremendous influence on the overall energy mix, which has spurred the interest of regional and international governmental bodies. In consequence, a series of highly profitable initiatives have been witnessed across microgrid market lately, a concise gist of which has been outlined below:
The buzzing trends of sustainability and reduced energy consumption have led to the mandatory implementation of power grids to ensure an unlimited supply of electricity. In the years to come, it has been forecast that the robust requirement for electricity will generate a substantially extensive demand for power grids to be installed at strategic locations and remotely inaccessible areas. In consequence, this would encourage microgrid market players to go the whole hog and come up with unique and reliable products that would be easy to install and operate. In fact, plans are already underway for massive grid installations - PanaHome, a unit of Panasonic, in tandem with the METI (Ministry of Economy, Trade and Industry), has revealed that the company has plans to connect 117 homes in the western part of Japan, to a solar-powered microgrid system. Panasonic’s venture proves that microgrid industry players are being influenced by the growing need to integrate renewables such as solar and wind energy in the national grid.
It is also prudent to mention that lately, microgrid market companies have been motivated to tap into areas prone to disasters - such as those that are prone to hurricanes, tornados, earthquakes, and the like, given how crucially pivotal microgrid installations have proven to be in these areas. Driven by the mammoth participation of regional governments and the presence of a stringent regulatory framework, microgrid market size is expected to cross USD 19 billion by 2024 – nearly five times the original valuation of this business space in 2016.