However, analysis by Navigant Research concludes that there is market opportunity within the microgrid space beyond DG. In fact, says the study, advanced energy storage will represent the single largest investment category among MET options by 2023, though DG investments as a whole will still be larger. According to Navigant Research, global annual DG vendor revenue is expected to grow from $1.8 billion in 2014 to $9.6 billion in 2023.
The microgrid market has changed significantly since 2012. For example, a much greater emphasis is now being placed on the economic value microgrids bring to the entire utility-led macrogrid. Furthermore, the value proposition for advanced energy storage has been greatly advanced by governments and regulators in key microgrid markets. Perhaps the most noteworthy change, though, is the investigation of new business models designed to support full commercial implementation of microgrid systems.
The report also considers a variety of microgrid enabling technology options, many of which play significant roles as the purpose and design of microgrids expand to encompass technologies and services related to smart buildings, demand response, distribution and substation automation, and smart metres.
It follows earlier Navigant findings which anticipate worldwide revenue from DG to grow from $97 billion in 2014 to more than $182 billion by 2023.