Power and automation technologies group ABB and Distributed Sun LLC, a solar development company entered into a memorandum of understanding for Distributed Sun to provide a wide range of services acting as ABB's preferred microgrid developer.
The companies will drive development and finance of urban and island microgrids, including solar energy, to demonstrate the economic viability of microgrid solutions in the U.S. market. By the end of the decade, the U.S. urban microgrid market size is estimated to be $5 billion to $10 billion and growing as much as 20 percent annually.
Distributed Sun is assembling a team of microgrid development and finance leaders via strategic partnerships with dominant global players like ABB and with the goal of deploying $1 billion of capital in combination with ABB technology solutions. The microgrid is where renewable energy, smart grid technologies, energy security and energy efficiency all come together.
By the end of the decade, U.S. policy and capital markets will discover conclusively that energy confidence and independence has a name — the microgrid. As these solutions are deployed on an ever-wider scale, renewables will be increasingly integrated with low-cost domestic natural gas.
Distributed Sun will provide comprehensive development and finance solutions to increase the rate at which ABB executes its business strategy. In addition, the companies will work closely together to develop microgrid decision-making methods based upon existing and adapted proprietary analytics. Distributed Sun's software platform will better inform ABB's microgrid strategy with customized market and policy databases and comprehensive, lifecycle yield and risk analysis.