UK Microgrid Industry to Grow at a CAGR 12.9% from 2022 to 2027

Chicago, May 11, 2023 (GLOBE NEWSWIRE) -- According to a research report UK Microgrid Market by Connectivity (Grid-connected, Off-grid), Offering (Power Generators, Controllers, Energy Storage, Software, Services), End User (Commercial & Industrial, Military, Utilities), Type, Power Rating & Geography - Global Forecast to 2027", published by MarketsandMarkets, UK Microgrid Market to Grow at a CAGR 12.9% from 2022 to 2027.

Rising use of microgrids in UK to reduce waste heat generated by traditional systems

Electricity is generated in the UK through a centralized power system, which uses fossil fuels or nuclear energy for electricity production. Despite its robustness and reliability, this power system produces little power efficiently, which results in large quantities of waste heat. This leads to increased demand for microgrids in the UK to prevent waste heat generation.

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The microgrid, a combination of decentralised electricity generation and on-site heat generation, offers substantial environmental benefits, resulting from a higher energy efficiency and enabling the integration of renewable sources like photovoltaic panels or wind turbines. Despite the potential need for significant amounts of intermittent energy generation, microgrids have a low impact on the electricity network because there is a good match between generation and load. An independent microgrid is created by combining photovoltaics with micro-CHPs and small batteries.

Initially, this is beneficial for remote communities, but in the long run, it can open a wide range of possibilities. By replacing nuclear and coal-fired power stations with microgrids, the demand on the transmission and distribution network would be greatly reduced. By improving grid resilience, microgrids can either indirectly support restoration crews by providing services, or directly by re-energizing the microgrid after an outage. The UK government has set a target to achieve net-zero emissions by 2050, which is expected to accelerate the adoption of renewable energy sources and microgrid industry. The country is also focusing on reducing greenhouse emissions by 80% by 2050 (Source: BBC News).


According to the UK Energy Research Centre (UKERC), there were around 3,000 community energy projects in the UK in 2021, including microgrids. There are 4,475 recognised microgrid projects in the proposal, planning, and deployment stages across a range of applications, according to an independent research centre. In February 2021, Hitachi Energy won another major order from Dogger Bank Wind Farm to connect the third transmission link from the world’s largest offshore wind farm located over 130 km from the UK mainland.

Similarly, since 2021, Quinn Estates, a housing developer in the UK, is working with SNRG SmartGrids to implement a microgrid-as-a-service business backed by Centrica, one of the country's largest energy companies. SNRG will design, finance, build, and operate the privately owned microgrid, providing energy-as-a-service to the 162 houses being constructed. This effort serves as a reminder that to combat climate change, there is need for significant reduction in carbon footprint. By establishing an energy-positive community, which produces more energy than it uses, SNRG hopes to reduce homeowners' energy costs by up to 30%. According to the Future Houses Standard, all new residences must be entirely electrified and have no connection to a gas network. According to Dan Nicholls, managing director of SNRG SmartGrids, the government has set a goal to execute that by 2025.

Top 5 Key Market Players in Microgrid companies 

  • Schneider Electric (France),
  • Siemens (Germany),
  • General Electric (GE) (US),
  • Eaton Corporation (US),
  • ABB (Switzerland) are among Other

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