Utility distribution microgrid adoption depends on regulatory reforms, natural disasters, and adoption of distributed energy resources.
A new slide-based report from Navigant Research examines the U.S. utility distribution microgrid (UDM) market, with a focus on technology and policy trends, customer adoption, utility deployments, and the vendor landscape, through 2024.UDMs are helping utilities across the country explore new market opportunities in the distributed energy resources (DER) landscape. Rather than being focused on providing economic value and resiliency benefits to behind-the-meter customers, UDMs can enable utilities to manage DER portfolios to bolster reliability at the distribution level of power service. Click to tweet: According to a new report from @NavigantRSRCH, deployed U.S. UDM capacity is expected to increase from 29 MW in 2015 to 241 MW in 2024, representing annual revenue of $917 million.
“Microgrids historically have been developed by private and public sector consumers not getting what they wanted in terms of reliability or renewables from their host distribution utilities,” says Peter Asmus, principal research analyst with Navigant Research. “The concept of a UDM turns this value proposition on its head as utilities seek new business models to better manage both customer-owned and utility-owned DER.”While microgrids operated and owned by utilities can serve the distribution grid first and work as a platform for new services, UDM adoption is dependent upon regulatory reforms, natural disasters, and both customer and utility adoption rates of DER, according to the report. Because of this, UDMs are expected to only be deployed for a small portion of the broad addressable market over next decade.
This report, Utility Distribution Microgrids, examines the UDM market in the United States, with a focus on technology and policy trends, customer adoption, utility deployments, and the vendor landscape. Cost curve projections and adoption forecasts are provided through 2024. Featuring Navigant Research’s Utility Technology Disruption Matrix and Execution Grid, the report also examines implications for traditional utility business models, provides utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success.