Navigant Research forecasts utility distribution microgrid market could reach $917 million annually by 2024
Written By: Stratton Report
March 2, 2017
On March 2, Navigant Research announced its estimate that the US utility distribution microgrid market revenue will reach $917 million annually in 2024.
Navigant stressed that utilities are now exploring microgrids as a result of technology advances such as smart inverters, smart switches, and new DER control platforms. The firm notes that while utilities were previously opposed to the concept of intentional islanding, utilities may come to represent 10 percent to 15 percent of the total microgrid market.
Peter Asmus, principal research analyst with Navigant Research observed: [/p]Picking the right utility business model will be the most important step going forward. Without regulatory clarity, the UDM market may be limited due to restrictions on rate-basing of infrastructure that is redundant or perceived as also serving a single customer or group of customers’ needs.[/p]
UDM adoption, per Navigant, will be dependent upon regulatory reforms, natural disasters, and customer adoption rates of DER like solar PV and energy storage.