VIDEO: U.S. distribution microgrids capacity is expected to reach 241 MW in 2024

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Deployed U.S. UDM capacity is expected to increase from 29 MW in 2015 to 241 MW in 2024, representing annual revenue of $917 million, according to a new report from Navigant Research.

A new slide-based report from Navigant Research examines the U.S. utility distribution microgrid (UDM) market, with a focus on technology and policy trends, customer adoption, utility deployments, and the vendor landscape, through 2024.

UDMs are helping utilities across the country explore new market opportunities in the distributed energy resources (DER) landscape. Rather than being focused on providing economic value and resiliency benefits to behind-the-meter customers, UDMs can enable utilities to manage DER portfolios to bolster reliability at the distribution level of power service.

“Microgrids historically have been developed by private and public sector consumers not getting what they wanted in terms of reliability or renewables from their host distribution utilities,” says Peter Asmus, principal research analyst with Navigant Research. “The concept of a UDM turns this value proposition on its head as utilities seek new business models to better manage both customer-owned and utility-owned DER.”

While microgrids operated and owned by utilities can serve the distribution grid first and work as a platform for new services, UDM adoption is dependent upon regulatory reforms, natural disasters, and both customer and utility adoption rates of DER, according to the report. Because of this, UDMs are expected to only be deployed for a small portion of the broad addressable market over next decade.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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