Microgrid Enabling Technologies Market Overview

Biomass, CHP, Diesel, Energy Storage, Fuel Cells, Hydro, Solar PV, and Wind:
Global Market Analysis and Forecasts

The driving force behind microgrid deployments is the growth in a wide variety of distributed energy resources (DER). As one of many options to aggregate and optimize these DER, the microgrid platform challenges the status quo by allowing for new levels of resilience and reliability in light of emerging threats to global power grids ranging from extreme weather events, earthquakes, and wildfires to terrorist threats. At the same time, microgrids can help organize mixed asset fleets of DER at the distribution network level. With the right set of control technologies, this platform can not only offer value streams to site hosts, but also provide value upstream to the larger grid.

Microgrids represent a key component of an emerging Energy Cloud focused on resilience and renewable energy integration. This report focuses on microgrid enabling technologies (MET), which consist primarily of different kinds of distributed generation (DG). The aggregate of DG resources—biomass, combined heat and power (CHP), diesel, fuel cells, hydroelectric, solar PV, and wind—represents the lion’s share of potential revenue for microgrid implementation spending. These are the hardware assets that are the most common and typically serve as the backbone of the microgrid value proposition: maximizing the value of onsite power generation. According to Navigant Research, global cumulative MET implementation spending is expected to reach nearly $112 billion by 2026.

This Navigant Research report analyzes the global market for MET, with a focus on eight DER: biomass, CHP, diesel, energy storage, fuel cells, hydroelectric, solar PV, and wind. The study provides an analysis of the market issues, including case studies, government incentives, and emerging standards, associated with MET. Global market forecasts for capacity and revenue, segmented by technology and region, extend through 2026. The report also examines the key technologies and hardware related to MET, as well as the competitive landscape.

Key Questions Addressed:
  • What are the primary sources of onsite power generation for microgrids today?
  • How will the mix of distributed generation (DG) change over the next 10 years?
  • How quickly will the deployment of various microgrid enabling technologies (MET) pick up over time?
  • How will the cost curves of distributed energy resources (DER) affect revenue attached to MET capacity additions?
  • What other technologies beyond DER are critical to future MET market growth?
  • How much will be invested in microgrid controls on a regional basis?
Who needs this report?
  • Fossil distributed generation (DG) manufacturers
  • Renewable DG manufacturers
  • Energy storage device manufacturers
  • Microgrid developers and systems integrators
  • Utilities
  • Smart grid software providers
  • Government agencies and regulators
  • Investor community

Table of Contents

1. Executive Summary

1.1   Microgrids: Technology Trends Bode Well for Future Growth

1.2   Market Forecasts

2. Market Issues

2.1   Microgrid Enabling Technologies: Definition

2.1.1   What Is a Virtual Power Plant?

2.2   The MET Market Landscape

2.2.1   DG Leading Source of Market Revenue

2.2.2   Growing Role of Energy Storage

2.2.3   Controls Is the Gateway to System Performance and Value

2.3   Direct Government Incentives for Core MET

2.3.1   Energy Storage

2.3.2   Solar PV

2.3.3   Wind Turbines

2.3.4   CHP

2.4   The Role of Emerging Standards for MET

2.4.1   UL 1741 Safety Standards for Grid Devices

2.4.2   IEEE Standards for DG, Energy Storage, and Controls

2.4.3   IEEE Standards for Energy Storage

2.4.4   IEC Standards for Transmission and Distribution Systems and Interoperability

2.4.4.1   Case Study: Duke Energy’s Coalition of the Willing

2.4.5   EMerge Alliance Direct Current Standards

2.4.6   DOE Microgrid Controller Standards

2.4.6.1   Case Study: California’s Smart Inverter Standards

2.5   EV Charging Standards

3. Technology Issues

3.1   Defining the Universe of MET

3.1.1   Mobile Phones and Pay-as-You-Go

3.1.2   Technologies Included in Market Capacity Forecasts

3.2   DG Is Still King

3.2.1   Biomass

3.2.1.1   Commercial Time Horizon

3.2.2   CHP

3.2.2.1   Commercial Time Horizon

3.2.3   Diesel Generation

3.2.3.1   Commercial Time Horizon

3.2.3.2   Case Study: Enchanted Rock Builds the Case for Natural Gas DG Resilience

3.2.4   Fuel Cells

3.2.4.1   Commercial Time Horizon

3.2.5   Hydro

3.2.5.1   Commercial Time Horizon

3.2.6   Solar PV

3.2.6.1   Commercial Time Horizon

3.2.7   Distributed Wind Turbines

3.2.7.1   Commercial Time Horizon

3.3   Other MET

3.3.1   Energy Storage

3.3.1.1   Commercial Time Horizon

3.4   Controls Platform Spending

3.5   Hardware Technologies Not Included in Market Forecasts

3.5.1   Smart Inverters

3.5.2   Smart Meters

3.5.3   Smart Switches

3.5.4   EV Integration Systems

4. Key Industry Players

4.1   Overview of Microgrid Vendor Landscape

4.2   Larger Technology Players

4.2.1   ABB Ltd.

4.2.2   Eaton

4.2.3   S&C Electric

4.3   DG Innovators

4.3.1   Caterpillar

4.3.2   Cummins

4.3.3   Tecogen

4.4   Energy Storage Innovators

4.4.1   Tesla Energy

4.4.2   ViZn Energy

4.4.3   Younicos

4.5   Controls Specialists

4.5.1   Opus One Solutions

4.5.2   Optimal Power Solutions

4.5.3   Schweitzer Engineering Laboratories, Inc.

4.6   EV Charging

4.6.1    NUVVE

5. Market Forecasts

5.1   Microgrid Market Overview: Methodology Snapshot

5.2   MET Forecasts

5.2.1   Overall MET Market Share Data

5.3   DG Forecasts

5.3.1   Biomass

5.3.2   CHP

5.3.3   Diesel Generation

5.3.4   Energy Storage

5.3.5   Fuel Cells

5.3.6   Hydro

5.3.7   Solar PV

5.3.8   Distributed Wind Turbines

5.4   Microgrid Controls

5.5   Conclusions and Recommendations

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

List of Charts and Figures

  • Selected MET Capacity and Implementation Spending by Technology, World Markets: 2017-2026
  • C&I Energy Storage CAPEX Assumptions by Technology, Average Installed Costs, World Markets: 2017-2026
  • Annual Small and Medium Wind Turbine Installed Capacity by Power Class, US: 2005-2016
  • Distributed Solar PV System Prices (Non-Weighted Average) by Component, World Markets: 2017-2026
  • Selected MET Capacity by Technology, World Markets: 2017
  • Selected MET Capacity by Technology, World Markets: 2026
  • Annual Biomass Microgrid Capacity and Implementation Spending, World Markets: 2017-2026
  • Annual CHP Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Diesel Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Energy Storage Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Fuel Cell Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Hydro Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Solar PV Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Wind Microgrid Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Annual Microgrid Controls Spending by Region, World Markets: 2017-2026
  • Annual Microgrid Controls Spending by Segment, World Markets: 2017-2026
  • Cumulative Selected MET Capacity and Implementation Spending by Region, World Markets: 2017-2026
  • Microgrid: Networks of Static DER with Point of Common Coupling
  • Virtual Power Plant: Aggregation and Up Stream Markets Are Defining Features
  • Overlap between Microgrids and DERMSs
  • IEEE: How Standards Lead to Smart Grid Interoperability
  • Open Field Message Bus Schemata
  • Arguments for Direct Current: Onsite Energy and Onsite Loads Are DC
  • Montgomery County: Microgrids as a Service
  • Smart Software Controls Turn Disparate Assets into Configurable Microgrid
  • NUVVE Distributed Resource EV Management Software Diagram
  • Microgrid Value Chain: Diverse and Growing

List of Tables

  • Selected MET Capacity by Technology, World Markets: 2017-2026
  • Selected MET Implementation Spending by Technology, World Markets: 2017-2026
  • Selected MET Capacity by Region and Technology, World Markets: 2017-2026
  • Selected MET Implementation Spending by Region and Technology, World Markets: 2017-2026
  • Selected MET Capacity by Technology, World Markets: 2017
  • Selected MET Capacity by Technology, World Markets: 2026
  • Annual Biomass Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Biomass Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual CHP Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual CHP Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Diesel Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Diesel Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Energy Storage Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Energy Storage Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Fuel Cell Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Fuel Cell Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Hydro Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Hydro Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Solar PV Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Solar PV Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Wind Microgrid Capacity by Region, World Markets: 2017-2026
  • Annual Wind Microgrid Implementation Spending by Region, World Markets: 2017-2026
  • Annual Microgrid Controls Spending by Region, World Markets: 2017-2026
  • Annual Microgrid Controls Spending by Segment, World Markets: 2017-2026
  • Cumulative Selected MET Capacity by Region, World Markets: 2017-2026
  • Cumulative Selected MET Implementation Spending by Region, World Markets: 2017-2026
  • Standards Affecting EV Integration into Microgrids
  • Installed Cost Characteristics of Key DG MET: 2017
  • Biomass for Microgrids SWOT Analysis
  • CHP for Microgrids SWOT Analysis
  • Diesel Generation for Microgrids SWOT Analysis
  • Fuel Cells for Microgrids SWOT Analysis
  • Hydro for Microgrids SWOT Analysis
  • Solar PV for Microgrids SWOT Analysis
  • Distributed Wind for Microgrids SWOT Analysis
  • Energy Storage for Microgrids SWOT Analysis
  • Four Industry Technology Giants in the Microgrid Space

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