The microgrid market is bigger than ever, with 545 megawatts of latest capability added in the USA final yr.
Microgrids with stand alone fossil fuel-based era dominated the microgrid market in 2018. Over the following 5 years, fossil fuels will proceed to stay the first era supply in each primary programs, which have one distributed power useful resource (DER), and superior multi-DER microgrids, whilst photo voltaic and storage capability grows.
The stats come from a brand new report by Wooden Mackenzie Energy & Renewables. The report summarizes market developments based mostly on the two,250 microgrids they’re monitoring throughout the nation. Wooden Mackenzie requires a microgrid to have no less than 24 hours of backup era with a purpose to qualify as a microgrid.
Because of excessive whole system prices for 24 hours of storage paired with photo voltaic, solar-plus-storage received’t overtake fossil-based microgrids throughout the forecast timeline.
Though there may be extra photo voltaic capability within the venture pipeline than has been put in in all operational microgrid programs to this point, the position of photo voltaic via 2024 will primarily be as a secondary capability supply, sometimes supporting a fossil gas generator. Many new photo voltaic and gas cell-paired microgrid programs will begin development in 2019 and 2020 to make the most of the ITC.
New financing choices for primary microgrids helped get extra of those microgrid programs in place in 2018. Third-party financing supported 80 p.c of latest primary microgrids in 2018 and will probably be a important issue enabling sustained microgrid market progress.
Greater than half of all 2018 U.S. microgrid initiatives had been third-party-owned, a financing shift that’s permitting microgrids to compete extra simply with backup gensets.
Financing choices for microgrid improvement are making microgrids a extra accessible answer for price-sensitive organizations. These organizations can now faucet new alternatives for demand-charge administration, and will not be required to allocate capital away from their core enterprise.
The Southeastern United States led the nation on microgrid deployment final yr based on the report, a shift that occurred within the absence of state incentives. It seems that the will for resilient power infrastructure has been driving organizations and companies to spend money on microgrids. Florida noticed the best enhance in deployment yr over yr, seemingly linked to current hurricanes within the state.
Isaac Maze-Rothstein is a Analysis Affiliate with Wooden Mackenzie Energy & Renewables targeted on microgrids. The complete U.S. microgrid forecast: H1 2019 report is obtainable for buy or as a part of a Grid Edge analysis subscription.