The Value of Remote Power Systems is Expected to Total Nearly $200 Billion from 2015 to 2024, According to Navigant Research
A new report from Navigant Research analyzes the market for remote microgrids and nanogrids, with global forecasts for capacity and revenue, broken out by segment and region, through 2024.
The market for remote power provision in regions not served by a traditional, centralized electricity grid is increasing, representing a growing opportunity for a variety of market players. Additionally, the synergy of microgrids and nanogrids in an off-grid environment mirrors the dynamics in a grid-tied environment in developed industrial economies, where the systems embrace a model of the future centered on distributed energy resources (DER). Click to tweet: According to a new report from Navigant Research, the cumulative global value of assets and services attached to the development of remote power systems is expected to grow from $10.9 billion in 2015 to $196.5 billion in 2024.
“Remote power systems, particularly microgrids and nanogrids, are one of the few technology markets where Africa and the Middle East represents the best opportunities,” says Peter Asmus, principal research analyst with Navigant Research. “The region is expected to lead in annual implementation revenue in 2015, and over the course of the entire forecast period, exceeding $11 billion by 2024.”
While the off-grid portion of the world’s energy infrastructure spend is expected to be a leading opportunity for both private and public sector actors, challenges do exist. The key to unlocking this value with new revenue streams, according to the report, lies in addressing a number of unique challenges, including existing subsidies for the status quo, logistical construction challenges, and lingering business practices that border on corruption at worst and inefficiency at best.
The report, Remote Microgrids and Nanogrids, examines the global market potential for remote microgrids and nanogrids. The study provides an analysis of remote power systems and discusses related energy access initiatives and DER trends. Global market forecasts for capacity and implementation revenue, broken out by segment and region, extend through 2024. The report examines the key market segments related to remote power systems, including commodity extraction, physical island, village electrification, military, commercial, and residential remote microgrids and nanogrids. Forecasts are also provided for the top remote microgrid market players and country markets.