The utility distribution microgrid market may be limited without regulatory clarity,
March 2, 2016 – Boulder, CO – A recent report from Navigant Research examines the US utility distribution microgrid (UDM) market, with a focus on technology and policy trends, customer adoption, utility deployments, and the vendor landscape, through 2024.
Utilities are now exploring microgrids thanks to technology advances such as smart inverters, smart switches, and new distributed energy resources (DER) control platforms. While utilities were previously opposed to the concept of intentional islanding, global trends suggest that UDMs may represent 10 percent to 15 percent of the total microgrid market. Click to tweet: According to a recent report from @NavigantRSRCH, US UDM revenue is expected to reach $917 million in 2024.
“Picking the right utility business model will be the most important step going forward,” says Peter Asmus, principal research analyst with Navigant Research. “Without regulatory clarity, the UDM market may be limited due to restrictions on rate-basing of infrastructure that is redundant or perceived as also serving a single customer or group of customers’ needs.”
UDM adoption is dependent upon regulatory reforms, natural disasters, and customer adoption rates of DER like solar PV and energy storage, according to the report. As such, UDMs are expected to only be deployed for a small portion of the broad addressable market over the next decade.
The report, Utility Distribution Microgrids, examines the UDM market in the United States, with a focus on technology and policy trends, customer adoption, utility deployments, and the vendor landscape. Cost curve projections and adoption forecasts are provided through 2024. Featuring Navigant Research’s Utility Technology Disruption Matrix and Execution Grid, the report also examines implications for traditional utility business models, provides utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success. 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 Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. 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.