Rising Demand for Enhanced Microgrid Connectivity With Affordable and Clean Energy Storage Will Propel the Microgrid Market Growth: IndustryARC

on June 25, 2019

HYDERABAD, India, June 24, 2019 /PRNewswire/ — The microgrid market is driven by the improved DER (distributed energy resources) technologies such as micro turbines, combustion turbines, hybrid system, wind system and others. These technologies can integrate with microgrid and reduce carbon footprints significantly as compared to conventional grid. Moreover, several government initiatives are accelerating the demand for microgrid technology. For instance, as per 2016 Paris agreement, India has been given a target to reduce the emission intensity around 33-35% by 2030 below 2005 levels. Additionally, the evolution of IoT based platform are also increasing the ability of microgrid system. IoT enabled microgrids are convenient for utilities to track real-time energy consumption. Similarly, the demand response (DR) market is expected to grow by more than 10% CAGR during 2019-2025, due to rising government initiatives for achieving optimum energy utilization. The overall rapid growth in DR market will create opportunities for microgrid system.

The Microgrid market is poised to grow at a rapid pace owing to a wide range of applications in utilities and healthcare sector. The solar and wind based power generation has been accelerating the requirement of microgrids, as these energy sources can be integrated with microgrid in easy and economical manner. The growing demand for renewable energy is the major driving factor for the growth of microgrid market. The installed base of renewable energy is expected to reach approximately 1,731GW by 2021 more than 10% CAGR during 2018-2021. In the latest developments, in April 2019, ABB, an automation tech company with Rolls-Royce will introduce global microgrid cooperation, where they will offer microgrid based solution for utilities, commercial and industrial establishments. Similarly, Healthcare is another opportunistic sector for the growth of the microgrid market. The World Health Organization considered microgrid as an advantageous option to power health institution. Moreover, the healthcare industry being highly regulated industry need to follow strict power back up regulations. Microgrid provides an economical option for healthcare sector to provide backup power in cost effective manner. In 2018, Kaiser Permanente, an American healthcare company showcase their hospital solar-storage microgrid demonstration, which shows that hospital improved its operational efficiency by 20%. One of their medical center named Kaiser Richmond stands to save an additional 2.63-MWh of energy per year, which shows the annual savings of $394,000.

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Fractal Energy Storage ConsultantsRising Demand for Enhanced Microgrid Connectivity With Affordable and Clean Energy Storage Will Propel the Microgrid Market Growth: IndustryARC