Due to the Diversity of Segments, the Business Case for Microgrids Continues to Evolve, According to Navigant Research
10 February 2016 - 9:15PM
Business Wire
Greater flexibility in regulation and public policy is key to
further market growth, report finds
A new report from Navigant Research analyzes 10 emerging
business models for the microgrid market, providing insight on the
strategies, maturity, and financial opportunities attached to each
development pathway.
Microgrids have the ability to play a role in realizing greater
utilization of existing generation and resources by enabling
networking and sharing of resources to match loads. Yet, resiliency
services enabled by technology are not free, and each microgrid
segment leans toward a different business model. Click to tweet:
According to a new report from Navigant Research, the modularity
and highly variable configurations of microgrids make calculating
an overall return on investment for all microgrids virtually
impossible, and as a result, the business cases for microgrids to
continue to evolve.
“There is no single dominant microgrid business model, given the
diversity of application segments and regulatory landscapes in
different regions of the world,” says Peter Asmus, principal
research analyst with Navigant Research. “Yet changes in the
marketplace, including the Power Purchase Agreement (PPA) and the
prevalence of software as a service, are pointing in the direction
of a few models as likely to become more common over time.”
The majority of the microgrids operating today have been pilot
projects or experiments, and the industry is now moving into the
next phase of project development. According to the report, the key
to future growth rests with greater flexibility in regulation and
public policy that, in turn, are spawning business model innovation
from market players both large and small.
The report, Emerging Microgrid Business Models, examines the
latest thinking among utilities, technology vendors, and regulators
about emerging business models that can take the global microgrid
market to the next level. The study explores 10 different business
models being applied to this market today. It also provides an
analysis of how different microgrid market segments gravitate
toward different development strategies that reflect preferred
resource mixes, existing contracting vehicles, and lessons learned
from adjacent markets such as solar PV and energy storage. Tables
included in the report highlight which of these models are being
applied to different microgrid markets, as well as the relative
maturity and financial opportunity attached to each development
pathway. An Executive Summary of the report is available for free
download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant,
provides market research and benchmarking services for rapidly
changing and often highly regulated industries. In the energy
sector, Navigant Research focuses on in-depth analysis and
reporting about global clean technology markets. The team’s
research methodology combines supply-side industry analysis,
end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of
the Energy Technologies, Utility Transformations, Transportation
Efficiencies, and Buildings Innovations sectors. Additional
information about Navigant Research can be found at
www.navigantresearch.com.
About Navigant
Navigant Consulting, Inc. is a specialized, global professional
services firm that helps clients take control of their future.
Navigant’s professionals apply deep industry knowledge, substantive
technical expertise, and an enterprising approach to help clients
build, manage and/or protect their business interests. With a focus
on markets and clients facing transformational change and
significant regulatory or legal pressures, the Firm primarily
serves clients in the healthcare, energy and financial services
industries. Across a range of advisory, consulting, outsourcing,
and technology/analytics services, Navigant’s practitioners bring
sharp insight that pinpoints opportunities and delivers powerful
results. More information about Navigant can be found at
navigant.com.
* The information contained in this press release concerning the
report, Emerging Microgrid Business Models, is a summary and
reflects Navigant Research’s current expectations 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 Navigant Research nor Navigant
undertakes any obligation to update any of the information
contained in this press release or the report.
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version on businesswire.com: http://www.businesswire.com/news/home/20160210005236/en/
Navigant ResearchLindsay Lorenz,
+1-303-493-5477lindsay.lorenz@navigant.comorMegan Maupin,
+1-312-583-5703megan.maupin@navigant.com