Although not required for microgrids to operate, energy storage systems have emerged as a popular and valuable component of these distributed energy networks
BOULDER, Colo.–(BUSINESS WIRE)–#CHP–A new report from Guidehouse Insights analyzes the global market for energy storage for microgrids (ESMG), providing forecasts for capacity and revenue, segmented by region, technology, and market segment, through 2029.
Interest in microgrids with enabled energy storage is growing rapidly across stakeholder segments. Innovation in business models and financing are key drivers propelling the market forward, and the most successful companies are unlocking the potential of these new business and financing models to reduce the risk and upfront costs to customers. Click to tweet: According to a new report from @WeAreGHInsights, throughout the next 10 years, a cumulative 36,938.5 MW of new ESMG capacity is expected to be installed, generating approximately $40.1 billion in revenue.
“The markets for both energy storage and microgrids have developed significantly in the last few years thanks to major price decreases and accelerated adoption,” says Ricardo F. Rodriguez, research analyst with Guidehouse Insights. “Looking ahead, the global market for ESMG is expected to grow rapidly, with total annual capacity additions increasing from 650.4 MW in 2020 to 8,633.4 MW in 2029.”
Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as a popular and valuable component of these distributed energy networks, according to the report. Microgrids are typically centered around generators providing electricity or combined heat and power (CHP) that often run on natural gas or diesel. The addition of variable renewable generation into new and existing microgrids is the primary driver of interest in ESSs. Although an ESS can provide benefits by reducing fuel consumption through the increased efficiency of fossil-fueled generators, the integration of renewable generation is the key benefit provided by ESSs for microgrids.
The report, Market Data: Energy Storage for Microgrids and Remote Power Systems, outlines the key market drivers and barriers within the global ESMG market. The study provides an analysis of specific trends and market dynamics for each major world region to illustrate how different markets are taking shape. Global ESMG forecasts for capacity and revenue, segmented by region, technology, and market segment, extend through 2029. The report also briefly examines the major technology issues related to ESSs for microgrids. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges with a focus on markets and clients facing transformational change, technology-driven innovation and significant regulatory pressure. Across a range of advisory, consulting, outsourcing, and technology/analytics services, we help clients create scalable, innovative solutions that prepare them for future growth and success. Headquartered in Washington DC, the company has more than 7,000 professionals in more than 50 locations. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.
* The information contained in this press release concerning the report, Market Data: Energy Storage for Microgrids and Remote Power Systems, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.