MACRO MONEY IN WORLD MICRO GRIDS

Utility Distribution Microgrids; Private, Public Power, and Remote Utility Networks for Renewable Energy Integration, Grid Reliability, and Load Reduction: Global Market Analysis and Forecasts

3Q 2012 (Pike Research/Navigant)

“Electric utilities’ approaches to integrating distributed energy resources using microgrids have varied widely in recent years. Some companies view utility distribution microgrids with a skeptical eye at best, and at worst as an existential threat to their traditional business models…[but] a handful of utility innovators are moving forward with microgrid projects…

“…[D]espite significant institutional bias and regulatory obstacles…[they are leveraging] smart grid technologies and utilizing new architectures to pursue creative solutions for the integration of renewable energy, the improvement of grid reliability, and the reduction of peak load. These early adopters are heralding a future in which microgrids will become a more prevalent part of the distribution utility landscape.”

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“…[The current level of benefits in the form of reduced capital expenditures on other more expensive grid solutions, as well as the provision of ancillary grid services rendered by both private and public grid-tied utility distribution microgrids (UDM) globally is almost $19 million in the average scenario…The economic value these UDM will provide to utilities is forecast to increase to more than $46 million by 2018.]

“North America represents the largest market…Key drivers… include pockets of poor power quality and the structure of behind-the-meter markets for distributed energy resources. Pike Research also anticipates that the Asia Pacific region will be a world leader in terms of [UDM] revenues, due in large part to the rapid growth of renewable distributed energy generation and the interwoven relationships between municipal governments, state-run grids, and government-owned distribution utilities…”

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