New York, Nov. 24, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Microgrid Market - Growth, Trends, and Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05989434/?utm_source=GNW
However, the high upfront costs and long payback periods of renewable energy sources pose a major barrier to the widespread deployment of microgrids.
- Owing to the increasing need for power for daily activities, the microgrid establishments in the remote off-grid communities are expected to dominate the market.
- The microgrid-as-a-service model is evolving, considering a wide variety of third-party ownership schemes, including Power Purchase Agreements (PPA), pay-as-you-go, leases, and other types of financing agreements, which enables the usage of microgrids without any upfront investment.
- North America is expected to be the largest market and presents one of the largest opportunity for the microgrid market during the forecast period.
Key Market Trends
Remote Off-Grid Communities Segment to Dominate the Market
- The off-grid communities’ usage of microgrid systems is gaining importance because of the growing need to offset the power outage in remote areas, resulting from growth in power demand from the existing power infrastructure. Moreover, the remote Off-grid Communities segment is likely to proliferate during the forecast period due to increasing energy consumption by the remote location, island, hilly region, etc..
- Major countries are adopting microgrid technology to provide electricity in a remote location. In 2019, the Myanmar government approved the microgrid project developed by InfraCo Asia and Electricite de France (EDF) for Kha Laing village, Myanmar.
- In 2019, Maharashtra Energy Development Agency issued a tender for a 29.4 KW microgrid project for Maharashtra, India. The project’s worth is likely to exceed INR 6,140,000 and likely to provide electricity to more than three villages.
- Also, with over 300 remote off-grid communities in Canada, microgrids’ design and operation is a critical topic with significant social and economic implications. Therefore, in 2018, Canada approved 3-year plans in which a multidisciplinary team at Alberta has led microgrid projects with government and industrial support. The team is expected to address technical issues such as microgrid operation, stability, reliability, and the study of social and economic aspects that provide ample opportunity for the global microgrid market in the coming future.
- Thus, factors such as government initiative, upcoming project, and private investment are likely to drive the global microgrid market during the forecast period.
North America to Dominate the Market
- North America is leading the microgrid market and is likely to continue dominating the market because of the number of upcoming projects. The Environmental Defense Fund announced a new initiative in Puerto Rico that aims to foster collaboration on low-carbon microgrid projects in rural communities. The government initiative is likely to attract investment from a private player in the market studied.
- Further, due to automation, the grid has become more dependent on computers and data-sharing, and more responsive to changes in the power demand. The high dependability on automation and complex nature makes the national grid vulnerable to cyber-attacks. Though the US power grid has not witnessed such attacks, after the cyber-attack in Ukraine in 2015 and 2016, the authorities are becoming more concerned about the vulnerability of the national grid system.
- Due to the requirement of large investments for reforming power grids, and concerns over the vulnerability of the national grid to cyber-attacks, the remote power systems, such as microgrids, are becoming a preferred choice, in terms of economic viability and reliability, which, in turn, is expected to drive growth of the market.
- In October 2020, Siemens USA announced that it had launched microgrid research and demonstration environment at its US corporate technology headquarters in Princeton, New Jersey. R&D work in Princeton is expected to investigate and validate technologies in a real environment, resulting in a clear blueprint for a more efficient and flexible microgrid system that can be replicated all over the world.
- Hence, owing to the above mentioned scenario, North America is expected to dominate the microgrid market
Competitive Landscape
The microgrid market is moderately consolidated. Some of the key players in this market are Hitachi Ltd, Siemens AG, Honeywell International Inc., Schneider Electric SE, Toshiba Corporation and General Electric Company, among others.
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Microgrid Market - Growth, Trends, and Forecasts (2020 - 2025)
The global microgrid market is expected to grow at a CAGR of 19. 08% over the period of 2020-2025. Factors such as increasing deployment of renewable energy sources in microgrids are acting as the drivers for the market.
| Source: ReportLinker