Utility Distribution Microgrids to Nearly Triple by 2018

Worldwide Capacity of Utility Distribution Microgrids to Nearly Triple by 2018, Pike Research Forecasts

Aug. 14, 2012 - To date, electric utilities' approaches to integrating distributed energy resources using microgrids have varied widely - from viewing utility distribution microgrids as an existential threat to the companies' traditional business models to active utilization of microgrid projects in order to integrate renewable energy, improve grid reliability, and reduce peak load. According to a new report from Pike Research, a part of Navigant's Energy Practice, microgrid adoption by utilities will increase steadily over the next several years, as awareness of, and confidence in, the microgrid model's capabilities and benefits grow. The total worldwide capacity of utility distribution microgrids - including investor-owned utility, public power grid-tied, and remote microgrids - will nearly triple in the next six years, the report finds, reaching 1.2 gigawatts in 2018. Annual vendor revenue from utility distribution microgrids will reach almost $3.3 billion in 2018.

"A handful of utility innovators are moving forward with microgrid projects despite significant institutional bias and regulatory obstacles," says senior research analyst Peter Asmus. "These early adopters are heralding a future in which microgrids will become a more prevalent part of the distribution utility landscape." read more>>>