The increasing number of residential, commercial, and industrial spaces is propelling the demand for a reliable, safe, continuous, and cost-effective supply of energy, stimulating microgrid technologies. Advantages of microgrid include reliability, enhanced energy efficiency, reduced consumption of electricity, security, cost-effectiveness, voltage control, and congestion relief.
The global microgrid market size will witness unprecedented growth over the years, reaching $38 billion in value by 2026. This is primarily due to investments being made by the governments to provide access to electricity in remote villages and districts. With respect to power source, the market is segmented into natural gas, diesel generators, solar PV, and CHP.
In 2017, the total net electricity generation in the EU was recorded at 3.1 million GWh and is expected to grow at a rapid rate owing to increasing developments in data centers, residential buildings, and the automobile industry.
The solar industry is witnessing favorable support from public and private entities towards encouraging the use of solar-sourced microgrids to boost renewable energy deployment. The total adoption of solar energy in the U.K. has increased from 5,488.6 MW in 2014 to nearly 13,259 MW as of June 2019. By 2023, the total solar capacity is in the country is anticipated to rise to 15,674 MW.
Evolving renewable energy applications
Fiscal benefits provided by the governments to encourage the adoption of solar power are positively influencing the market dynamics. Incentives such as, tax rebates, investment tax credits, leveraging schemes, FIT, and subsidies will considerably propel the deployment of solar power.
Various market players are investing towards R&D activities to improve the efficiency of the product and render operational flexibility. The US Department of Energy had established a photovoltaics subprogram a few years ago that supported research and development projects with an aim to reduce the manufacturing cost and improve reliability of PV technologies. The program is focusing on reaching the levelized cost of energy of $0.03 per kilowatt-hour.
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