February 20, 2012
According to a new report from Pike Research, microgrid capacity worldwide will experience a compound annual growth rate (CAGR) of more than 22% over the next five years, reaching 4.7 gigawatts by 2017. That represents $17.3 billion in annual worldwide revenue by the same year.
Microgrids, or integrated systems in which distributed energy resources (DERs) operate as a single, autonomous grid either in parallel to or isolated from the existing utility power grid, offer customers and distribution utilities new ways to strengthen reliability and manage variable, bidirectional resources.
• fewer line losses,
• a lower demand on transmission infrastructure,
• the ability to rely on more localized sources of power generation.
All of these benefits are stimulating increased demand for microgrids worldwide, in a range of application scenarios including campus environments, military operations, remote/off-grid settings, community/utility systems, and commercial and industrial markets.
Microgrids still face significant barriers to wide scale adoption. As of 2012, not a single national government has developed an integrated or comprehensive policy creating a viable, vibrant market for customer-driven microgrids.