Market Data: Microgrid O&M Revenue Opportunities

Market Forecasts by Enabling Technology, Application Segment, and Region

Microgrids vary immensely in size, resource mix, vendor composition, and application. As a result, estimating the related operations and maintenance (O&M) revenue opportunities requires careful consideration. A diverse set of opportunities present themselves in this aspect of the microgrid ecosystem, though clarity on the extent and nature of how best to capture these revenue streams remains clouded. This report examines the types of O&M revenue opportunities that are both the most lucrative and available to the widest array of potential market participants.

The revenue opportunities for fixed cost O&M are typically significantly greater than those for variable O&M—even for highly utilized generation assets with frequent asset dispatch that incur relatively high variable O&M costs. Thus, this report is focused on fixed cost O&M microgrid revenue opportunities. Today, by virtue of having the largest installed base of microgrids, North America leads the world in fixed O&M opportunities, followed by Asia Pacific. According to Navigant Research, global fixed O&M revenue is expected to grow from $828.4 million in 2017 to just over $4.0 billion in 2026.

This Navigant Research report analyzes the global market potential for the provision of O&M services for key microgrid enabling technologies (MET), major microgrid market segments, major regions, and 10 selected countries. The study provides an analysis of the O&M revenue opportunity drivers in the microgrid market and the key technology trends affecting these opportunities. Global market forecasts, broken out by segment, MET, and region, extend through 2026.

Key Questions Addressed:
  • What is the forecast for fixed operations and maintenance (O&M) revenue in the global microgrid market over the next decade?
  • How does revenue for balance-of-plant (BOP) fixed O&M compare to other fixed O&M revenue in the microgrid market?
  • Which microgrid market segments represent the best fixed O&M markets?
  • Which regions of the world lead in fixed O&M revenue opportunities related to microgrids?
  • Which countries outside of the United States represent some of the best fixed O&M microgrid revenue opportunities?
Who needs this report?
  • Microgrid project developers and owners
  • Distribution utilities
  • Microgrid hardware suppliers
  • Microgrid software suppliers
  • Energy storage vendors
  • Microgrid financiers
  • Distributed energy resources (DER) controls vendors
  • Investor community

Table of Contents

1. Executive Summary

1.1    Microgrid Revenue Streams Are Diverse and Growing

2. Market Overview and Data Assumptions

2.1    Market and Methodology Overview

2.2    Microgrid Market Existing Capacity Snapshot

2.3    Regional Capacity and Revenue Dynamics

2.4    Customer Segment Capacity and Revenue Dynamics

2.5    O&M Revenue Opportunity Drivers

2.5.1   Microgrid DER Mix

2.5.2   Geography Considerations

2.6    Key Technology Trends Affecting O&M

2.6.1   Shift to Inverter-Based Resources

2.6.2   Growing Reliance upon Advanced Batteries

2.6.3   Thermal Energy Services

2.6.4   Microgrid Controls Platform Diversity

2.6.5   Evolving Microgrid Business Models

3. Market Forecasts

3.1    Microgrid O&M Opportunity Overview

3.1.1   Fixed O&M: The Prime Opportunity

3.1.1.1    Equipment O&M

3.1.1.2    Plant O&M

3.1.2   Variable O&M Drivers

3.2    O&M Revenue Forecast Methodology

3.3    Fixed O&M Revenue Opportunities by Selected Resource Type

3.3.1   Diesel Generators

3.3.2   Natural Gas Generators

3.3.3   CHP

3.3.4   Solar PV

3.3.5   Wind Turbines

3.3.6   Fuel Cells

3.3.7   Biomass

3.3.8   Hydroelectric

3.3.9   Energy Storage

3.3.10   BOP

3.4    Microgrid O&M Revenue by Customer Segment

3.4.1   Institutional Campus

3.4.2   C&I

3.4.3   Community

3.4.4   Direct Current

3.4.5   Military

3.4.6   Remote

3.4.7   Utility Distribution

3.5    Microgrid O&M Revenue by Region

3.5.1   North America

3.5.2   Europe

3.5.3   Asia Pacific

3.5.4   Latin America

3.5.5   Middle East & Africa

3.6    Microgrid O&M Opportunities for 10 Selected Countries

3.7    Conclusions and Recommendations

4. Acronym and Abbreviation List
5. Table of Contents
6. Table of Charts and Figures
7. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Operational Microgrid Capacity Market Share by Region, World Markets: 4Q 2016
  • Microgrid Capacity and Implementation Revenue by Region, World Markets: 2017-2026
  • Operational Microgrid Capacity Market Share by Segment, World Markets: 4Q 2016
  • Microgrid Capacity and Implementation Revenue by Segment, World Markets: 2017-2026
  • Annual O&M Costs, Three Microgrid Scenarios: $/kW-Year
  • Annual O&M Costs, Three Microgrid Scenarios: Annual O&M Portions
  • Annual O&M Costs, Excluding Fuel and Electricity, Three Scenarios: $/kW-Year
  • Annual O&M Costs, Excluding Fuel and Electricity, Three Scenarios: O&M Portion
  • Microgrid Fixed O&M by Selected Microgrid Enabling Technology, World Markets: 2017-2026
  • Microgrid Fixed O&M Revenue Opportunities by Market Segment, World Markets: 2017-2026
  • Microgrid Fixed O&M Revenue Opportunities by Region, World Markets: 2017-2026
  • Microgrid Fixed O&M Revenue Opportunities for Selected Country Markets, World Markets: 2017-2026
  • O&M Revenue Streams via Energy Savings Performance Contracts

List of Tables

  • Assumptions Underlying Navigant Research’s Microgrid Market Forecasts
  • Operational Microgrid Power Capacity by Region, World Markets: 4Q 2016
  • Microgrid Capacity by Region, World Markets: 2017-2026
  • Microgrid Implementation Revenue by Region, World Markets: 2017-2026
  • Operational Microgrid Power Capacity by Segment, World Markets: 4Q 2016
  • Microgrid Capacity by Segment, World Markets: 2017-2026
  • Microgrid Implementation Revenue by Segment, World Markets: 2017-2026
  • Microgrid Fixed O&M by Selected Microgrid Enabling Technology, World Markets: 2017-2026
  • Microgrid Fixed O&M Revenue Opportunities by Market Segment, World Markets: 2017-2026
  • Microgrid Fixed O&M Revenue Opportunities by Region, World Markets: 2017-202
  • Microgrid Fixed O&M Revenue Opportunities for Selected Country Markets, World Markets: 2017-2026

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