The vendor landscape of the global microgrid market is reigned by business giants such as Chevron Corporation, GE Energy Management, Power Analytics Corporation, Siemens AG, and Pareto Energy and emerging corporations such ZBB Energy Corporation, Viridity Energy, Inc., Schneider Electric, Echelon Corporation, S&C Electric Company, Honeywell International, Inc., Toshiba Corporation, and ABB. With the increasing global demand for energy leading to microgrid market growth, each of the company is trying to buckle up and achieve sustainable growth.
“Microgrid technology has been successful in curbing the frequent power outages, energy insecurity, fluctuating costs, and depleting fossil fuels. Also, it will prove to be instrumental in the area where main grid cannot be planted,” says a TMR analyst.
Microgrids utilizing renewable energy sources for power generation have higher efficiency, improved quality of power, and reduced costs, thus making it a popular choice. Moreover, there is almost zero carbon emission in the case of renewable energy systems. The rising demand for power that is emission-free, reliable, and secure is a driving factor behind the growth of the global microgrid market.
Some of the major companies have already started investing and making development in renewable energy driven microgrids. For example, In July 2014, Schneider Electric opened a solar inverter test and grid support labs – MicroGrid Lab in Burnabay, British Columbia, one of the largest of its kind in the world. It was furnished to support designing and testing of Schneider Electric’s revolutionary SE1 1500V platform.
Scientists and Engineers Work on Operational Instability
One of the major challenges for the deployment of a microgrid is operational stability. The instability accounts for the proper regulation of voltage and frequency values through both active and reactive power control. The remote mode faces greater instability than the connected mode. In general, the instability arises due to oversupply or undersupply of electricity.
Introducing relays and monitoring systems can help in resolving instability issues, but in turn can create a new impediment, which is the increase in installation cost. Moreover, it will also make the set – up bulkier, which is not suitable.
Grid Tied Leads with Substantial Margin
Growing at a remarkable CAGR of 20.7% from 2014 to 2020, the global microgrid market is expected to rise to a value of US$35.1 bn by 2020 from the estimated US$9.8 bn in 2013. Based on the product type, due to the aforementioned advantage, the tied microgrid, which was leading in 2013 with a total share of 72%, is expected to lead till 2020.
This review is based on the information given in the Transparency Market Research report titled “Microgrid Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 - 2020”
The global microgrid market has been segmented in the following manner:
Global Microgrid Market: Product Segment
- Grid-tied (Grid Connected)
- Remote (Off-grid)
Global Microgrid Market: Application Segment
- Campus and Institutions
- Community and Utility
- Commercial and Industrial
- Defense and Military
- Remote Islands
Global Microgrid Market: Regional Analysis
- North America
- Asia Pacific
- Rest of the World (RoW)