Rather than viewing microgrids as a threat to public safety due to intentional islanding and/or departing customer load on long-term revenue projections, a small, but growing number of utilities view the microgrid they may own and operate – a utility distribution microgrid (UDM) – as the next logical extension of their efforts to deploy smart grid technology. As I’ve noted earlier, the developed world can learn interesting lessons from the developing world.
Navigant Research’s base scenario shows that the total UDM market represents over $2.4 billion of economic activity today, with the bulk of this investment flowing into projects located in the Asia Pacific region. As has been noted in other Navigant Research reports, North America is the overall market leader. Yet when it comes to utilities, both Asia Pacific and Europe are ahead in near-term deployments and related implementation revenues. All told, this UDM market is forecasted to reach $5.8 billion under the base scenario in 2023, revenue compounded annual growth rate (CAGR) of 10.2%.
However, there is one important exception to this market generalization: Alaska.