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The World Market for Microgrids

  • Executive Summary
    • Market Scope
    • Report Methodology
    • Microgrid Market Overview
      • Microgrid Types
      • Microgrid Components and Energy Generating Options
    • Market Size and Growth
      • Global Microgrid Market Reaches $4.14 Billion in 2010
      • Global Microgrid Market to Reach $14.92 Billion by 2020
      • Institutional and Campus Segment Provides 1.93 GW in 2020
      • North America Dominates Microgrid Market
    • Factors in Market Size and Growth
      • Aging Electricity Infrastructures Around the World
      • Policies and Regulations Needed To Limber Up Microgrid Market
      • Energy Demand Increasing
      • Government Grants and Incentives Have Significant Impact on Market Growth
      • U.S. Military Interest in Microgrids High
      • Universities Aid in Much Needed Microgrid R&D
    • Technological Innovations and Schemes
      • Lockheed Martin to Create `HI Power' Microgrid
      • Paladin(R) SmartGrid(TM) Software Platform
      • EDSA's EPAG Data Integration Platform
    • Microgrids Around the Globe
      • China and U.S. Together Consume 40% of the World's Energy
      • Electricity Consumption Worldwide
      • IEA Electrifies World with Aid of Microgrids
      • Electricity Infrastructure Overview in North America
      • Clean Energy in North America
      • CERTS Microgrid Concept
      • California Pioneering in Microgrids
      • Twentynine Palms to Incorporate Microgrids
    • Employment Opportunities
      • Wide Variety of Jobs Within the Microgrid Market
      • Growth in the Microgrid Job Sector
      • Microgrid-related Job Earnings
        • Table Selected Microgrid-related Occupational Earnings and Required Education, 2010
  • Microgrid Market Overview
    • Microgrid Definition
    • Microgrid Types
      • Institutional/Campus Microgrids
      • Commercial/Industrial Microgrids
      • Community/Utility Microgrids
      • Military Microgrids
      • Smart Microgrids
      • Rudimentary Microgrids
      • Remote Off-grid Systems/Islanded Microgrids
      • Grid-connected Microgrids
    • Microgrid Components
    • Energy Generating Options
      • Generators
      • Fuel Cells
      • Fossil Fuels
      • Photovoltaic Sources
      • Wind Turbines
      • Microturbines
      • Internal Combustion Engines
      • Marine Energy or Tidal Power
      • Hydroelectric Power
      • Geothermal Power
      • Biomass Power
      • Mini Nuclear Plants
    • Energy Storage Options
      • Batteries
      • Flywheels
      • Superconducting Magnetic Energy
      • Supercapacitators
      • Regenerative Fuel Cells
      • Compressed Air
    • Load Systems
      • Inverters
      • Smart Meters
      • Converters
      • Sensors
      • Controllers
    • Regulating and Management Hardware and Software
    • T&D System Automation
    • Microgrid Beginnings
    • Global Regulatory Overview
  • Market Size and Growth
    • Global Microgrid Market Reaches $4.14 Billion in 2010
    • Institutional/Campus Microgrids Grow by 53% over 5-Year Span
    • Growth for Commercial and Industrial Microgrids Not Lagging
    • Community and Utility Segment Reaches $.87 Billion in 2010
    • Military Microgrids See 106% Growth in 4-Year Period
    • Remote Off-grid Systems Produced .08 GW in 2010
    • Global Microgrid Market to Reach $14.92 Billion by 2020
    • Institutional and Campus Segment Provides 1.93 GW in 2020
    • Commercial/Industrial Segment Reaches $4.62 Billion by 2020
    • Community and Utility Microgrids Claim $2.76 Billion in 2020
    • Military Segment Projected to Reach $.81 Billion in 2015
    • Remote Off-grid Systems Expected to See Grandiose Growth
    • Microgrid Market Dominated by Institutional/Campus Segment
    • North America Dominates Microgrid Market
    • Potential Growth of Global Microgrid Market Virtually Huge
  • Factors in Market Size and Growth
    • Aging Electricity Infrastructures Around the World
    • Policies and Regulations Needed To Limber Up Microgrid Market
    • Microgrids Will Help Reduce Power Interruptions
    • Energy Demand Increasing
    • Electricity Costs Rising
    • Energy Efficiency Market Still Gaining Ground Despite Great Recession
    • Smart Microgrids Help Reduce Energy Consumption
    • `Emerging Markets' May Have Market Advantage
    • Microgrid Potential to Sell Electricity Back to `Macrogrid'
    • Microgrids Support Demand for Renewable Energy
    • Stakeholders and Investors See Future in Microgrids
    • Microgrids Established as Environmentally Friendly
    • Governments Obsessed with Energy Efficiency
    • Government Grants and Incentives Have Significant Impact on Market Growth
      • Missouri Department of Natural Resources Awards $49,095 for Microgrid Grant
      • New Mexico State University Granted $750,000 for Microgrid Research
      • Department of Defense Allocated $5M for Microgrid Pilot Program
      • DOE Offers $3.9 Billion in Smart Grid Stimulus Grants
    • U.S. Military Interest in Microgrids High
    • The Military Energy Security Act (HR 5230)
    • Federal Agencies Required to Have COOPs in Place
    • Electric Utilities Not Always Supportive of Microgrids
    • Universities Aid in Much Needed Microgrid R&D
      • Pennsylvania State University Receives $122 Million for Clean Energy Hub
      • CERTS Microgrid Test Bed at University of Wisconsin
      • Drexel University Home to Innovative Microgrid Project
      • Missouri S&T University Receives $3.45 Million Research Grant from Military
      • UC San Diego Favors Microgrids
      • Pareto Energy Partners with Howard University
      • Lawrence Berkeley National Laboratory Involved in CERTS
      • National Technical University of Athens Uses MAS Technology
      • University of Kassel's Institute for Electrical Energy Technology (IEE)
      • University of Tokyo
      • BCIT Campus Microgrid
      • EU Microgrid Project Aided by Numerous Universities
    • Countries Join Forces To Share Technologies and Resources
      • Okinawa and Hawaii Join Forces on Clean Energy Technologies
      • Japan-U.S. NEDO Joint Project Launched in New Mexico
      • Showa Shell and Saudi Aramco Plan Microgrid Solar Facilities
    • Entire Smart Grid Market Exploding
    • Merrill Lynch Strategist Calls `Clean Tech' the Sixth Revolution
    • Microgrid Growth Supported by New Energy Storage Technology
    • Microgrids Not to Replace Central Power Generation: At Least in the Short Term
    • Decreasing Solar Power Costs Improve Prospects for Microgrids
    • Providing Seamless Switches between Power Sources Tricky
    • Cyber Security for Smart Grids Still in Early Stages of Development
    • Microgrid Growth Will Lead to More Local Decision Making
    • Microgrid Associated Costs Going Down
    • Microgrids Help Reduce Some Energy-related Costs
    • Microgrids Help Strengthen Energy Security
    • Microgrids Sometimes Incongruent with Land Management Plans
    • Wal-Mart Goes Micro
    • Rare Earth Metal Scarcity Does Not Bode Well for Microgrids
    • New York City Shoots Down Microgrid Proposal
    • Microgrid Success Stories Ignite Market Interest
    • Microgrids Ideal for Countries with Developing Electric Infrastructures
    • Inverter Reliability Improvements Key to Microgrid Growth
    • Microgrids and Electric Vehicles
    • Microgrids May Help Guard Against Terrorists' Attacks
    • Networking Groups, Research Organizations and Information Hubs
      • Power Systems Engineering Research Center
      • Right… OOPS! Smart Grid Interoperability Panel - Cyber Security Working Group
      • The Galvin Electricity Initiative
      • NextEnergy's Microgrid Power Generation Pavilion
      • NanoMarkets' SmartGridAnalysis.com
      • Demand Response and Smart Grid Coalition
      • Global Intelligent Utility Network Coalition
    • Workshops, Conferences and Other Events Inspire Microgrid Innovations
      • Solar Decathlons Open to the Public
      • CAPS Hosts Event for Advanced Power Systems
      • GovEnergy Training Workshop and Tradeshow
      • Smart Grids Summit 2011
      • Grid ComForum 2010
      • Asia-Pacific Clean Energy Summit
      • The Networked Grid 2010
      • GridWeek 2010 Conference
      • U.S. Energy Association Holds Microgrid Workshop
      • Energy Independence and Global Warming Committee Has Microgrid Interests
      • EMerge Alliance Focuses on Microgrid Platform
  • Technological Innovations and Schemes
    • Lockheed Martin to Create `HI Power' Microgrid
    • Homer Energy's Homer v2.75
    • Toshiba's Lithium-ion Battery
    • Paladin(R) SmartGrid(TM) Software Platform
    • Portable Miniature Solar/Battery Microgrid Modules
    • Renewable Energy Powered EMP-protected Microgrids
    • Naturalwatt MicroGrid Power Station
    • Lockheed Martin's Smart Energy Enterprise Suite
    • EDSA's EPAG Data Integration Platform
    • Petra Solar's New SunWave Smart Energy Module
    • Ideal Power Converter Develops Compact Efficient Converters
    • Pennsylvania Incorporates Microgrid into Subway System
    • ET's Hybrid Micro Grid Power
    • Pure Power's Military-grade Mobile Solar Microgrid
    • Viridity Energy's VPower Optimization Software
    • SkyBuilt Power's SkyStation Suitable for Microgrids
    • Nano Battery Storage Technologies
    • Phasor Measurement Unit Installations
    • Canadian REV Building Ancillary Power Vehicles for Microgrid Program
    • Vehicle to Grid Technology
    • NexTek Technology Simplifies AC/DC Conversion Process
  • Microgrids Around the Globe
    • World Population
      • Table Projected World Population and Percent Change From Prior Year, 2010-2030
    • China and U.S. Together Consume 40% of the World's Energy
    • Electricity Consumption Worldwide
    • Electricity in Developed and Developing Countries
    • IEA Electrifies World with Aid of Microgrids
    • North America
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
      • Selected North American Microgrid Ventures
    • South America and Central America
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
      • Selected Latin American Microgrid Ventures
    • Europe
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
      • Selected European Microgrid Ventures
    • Africa
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
      • Selected Microgrid Ventures
    • Asia
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
        • Table Thailand's Renewable Energy Production Goals from 2009-2022
      • Selected Microgrid Ventures
    • Middle East
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
      • Selected Microgrid Ventures
    • Australia and Oceania
      • Electricity Infrastructure Overview
      • Regional Factors in Market Size and Growth
      • Selected Microgrid Ventures

Microgrids, also referred to as minigrids, off-grids and remote electrification grids are a smaller version of the traditional electrical grid or the newer digitized smart grid. A large variety of microgrid types exist: smart microgrids, islanded or decentralized microgrids, hybrid microgrids and rudimentary microgrids, to name a few. Microgrid installations around the world include everything from diesel generator-based rural electrification projects supplying electricity to small remote villages to large, futuristic cities and theme parks powered by multiple forms of renewable energy and using the newest microgrid technologies.

In 2010 the world market for microgrids reached $4.14 billion, up significantly from 2009. This exciting growth is expected to continue at least through the year 2020. The market segment for institutional and campus microgrids, claiming nearly 45% of total market share in 2010, is expected to cede some of its ownership by 2020 to the commercial and industry microgrid sector, as well as to military and off-grid microgrid types. In 2010, North America staked a near 74% of total microgrid market share; by 2020 it is expected the microgrid pie will be slightly more evenly distributed among the regions of the world.

The emerging microgrid market is in an advantageous position, being cradled by other growing, and some flourishing, industries. Microgrids are riding the waves of the expanding solar power industry, smart grid market and the multifaceted renewable energy market. Simultaneously, microgrids are inspiring growth in related energy markets such as energy storage and inverter technology. Positioned amid such bustling markets benefits the microgrid market with increased security, research support and interest from a large number of invested individuals across many occupations.

Government interest in microgrids is increasing, especially in the United States, as energy security becomes high priority. Microgrids are ideal for military bases, where soldier safety is often compromised by power outages and fuel delivery—both problems easily diminished with the use of microgrids.

Over the past decade, significant obstacles have stood in the way of microgrid growth. As with many emerging industries, especially those that are energy-related, having established policies and a solid regulatory base in place are necessary for market growth to reach its potential. Although slow to be implemented, microgrid guidelines are being established by government bodies and other organizations with investments in microgrid technologies. Success in the microgrid industry has also been contingent on some less than perfect technologies. These technological setbacks to market growth are quickly showing signs of dissipating, however, as universities and other research centers around the world develop methods and technologies to improve microgrid schemes.

The World Market for Microgrids contains comprehensive historical data (2006-2010) and forecast data (2011-2020). This report identifies key trends, regulations, politics, new technologies, jobs and economic and geographic factors affecting the size and direction of microgrid market growth around the world. Profiles of more than 15 major, or simply interesting, companies involved in the microgrid market are also included.

Report Methodology

The information contained in The World Market for Microgrids has been gathered from trade associations; business, science and law journals; company literature and websites; primary research interviews with more than ten key individuals, research services and institutes around the world; and is based on data from government agencies, such as the U.S. Census Bureau, U.S. Department of Energy and the Central Intelligence Agency.

How You Will Benefit From This Report

The World Market for Microgrids details significant trends, technologies and market numbers for a clear overview of the complex microgrid market. This report will help:

  • Managers identify market opportunities and develop solid implementation plans for microgrid activities.
  • Research and development professionals stay on top of competitor initiatives, and understand the developments and obstacles associated with the microgrid market.
  • Business development executives work within the dynamics of the market and identify possible partnerships.
  • Information and research center librarians access vital information.
  • Policy makers and government officials understand the dynamics and scope of the market they are working to affect.
  • Advertising agencies working with clients involved in the microgrid industry to help design appropriate messages and images.
  • Investors and stakeholders gain a well-rounded view of the microgrid market, including its strengths, weaknesses and likely future direction.


In the News


Expanding Military Interest in Microgrid Technology Fuels $4 Billion Industry

New York, January 26, 2011 —The world microgrid market reached $4 billion last year with North America claiming 74% of 2010’s total industry share, finds market research publisher SBI Energy. Fueled by rapidly growing solar, renewable energy and smart grid markets, the microgrid has become a viable solution to supply energy to local communities. Microgrid installations around the world include everything from diesel generator-based rural electrification projects that supply electricity to small rural communities to large, futuristic cities and theme parks using the newest microgrid technologies.

SBI Energy’s latest market study, The World Market for Microgrids, has identified a unique opportunity for marketers at U.S. military bases seeking reliable and secure energy. The majority of U.S. military bases are powered by public electrical grids, which in some instances lead to as many as 300 power outages per year. These interruptions weaken military readiness and security. In the face of a terrorist attack or natural disaster, reliance on conventional energy supplies may be inefficient and may even be detrimental to military functions. Microgrid advantages in this case are clear: in the face of a massive power outage, the microgrid is able to separate from the main utility grid—if it is not already islanded —and keep vital facilities and operations powered.

As U.S. Representative Martin Heinrich of the 1st Congressional District of Mexico says, "Microgrids provide a more secure infrastructure for our military-both here and abroad. Growth in the military microgrid segment will rise by 375% from 2010 to 2020. Total market value in this segment is projected at $1.6 billion in 2020, up from $.33 billion in 2010 and electrical output will increase from .13 GW in 2010 to .60 GW in 2020.

As the microgrid expands its realm of operations in commercial, military and industrial segments, the costs associated with implementation are decreasing. Installation price can vary wildly depending on a number of factors-including the size, scope and technological advancement of a specific project. From solar-hybrid implementations in small remote villages to giant undertakings such as the $4 billion Crystal Island project, the future will become less individualized and more mass, factory built-greatly reducing costs associated with implementing a microgrid.

The World Market for Microgrids provides an in-depth analysis of the economic drivers and challenges and key social and political factors facing the microgrid industry. The market study also reports historical market and growth in dollars (2006 - 2010), broken down into five market segments, as well as future forecast data through 2020. Furthermore, a new chapter segment featured in all 2011 reports examines the current and upcoming employment opportunities that will be created as microgrid manufacturing and installations ramp up. Microgrid activity around the world, including information on the overall electricity situation and specific microgrid projects, is examined, as are the company strategies of 15 leading industry manufactures and new technologies.

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Additional Materials

While increasing population, rural development and overall increasing energy consumption is good news for utility companies, there is one technological movement underway that will hurt their revenue steam in the future. And that is the microgrid's potential to sell electricity back to ‘macrogrid'.

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