September 25, 2013
Operating in isolation from the wider power grid, remote microgrids are multiplying thanks to a combination of factors that include high costs for existing energy services in many parts of the world and declining costs for solar photovoltaics and other renewable distributed energy generation technologies. According to a new report from Navigant Research, worldwide revenue from remote microgrids will grow from $3.1 billion in 2013 to more than $8.4 billion in 2020.
“Remote microgrids, especially ones that operate on physical islands, are viewed by the market as low-hanging fruit,” says Peter Asmus, principal research analyst with Navigant Research. “Since remote microgrids are the most lucrative of current microgrid opportunities, in terms of per-megawatt vendor revenues, we are witnessing an influx of firms, both large and small, trying to figure out the best business model to deploy. Not surprisingly, the largest number of remote microgrids is being deployed in the developing world, although activity is also increasing in Europe and North America.”
While remote power systems number in the thousands, many are still powered by diesel generation. Others showcase smarter and much cleaner combustion technologies that are capable of reducing diesel consumption by as much as one-third, even without any renewable generation, according to the report. When renewable distributed energy generation is added to the mix, these remote systems begin to look like the classic microgrids that have been the focus of funding from the U.S. Department of Energy and Department of Defense.
The report, “Remote Microgrids”, analyzes the global market for remote microgrids in four key segments: commodity extraction, physical islands, village electrification, and remote military. The study provides an analysis of the market issues, including business cases, opportunities, and implementation challenges, associated with remote microgrids. Global market forecasts for capacity and revenue, broken out by segment and region, extend through 2020. The report also examines the key technologies related to remote microgrids, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Remote 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.