Microgrid Market: Introduction
Swift industrialization together with increased demand for power is expected to boost growth avenues in the global microgrids market in the forthcoming years, states a new research report by TMR. The study highlights that the market is estimated to expand at a CAGR of 11.3% during the forecast period of 2021–2031, considering the base year as 2020. Thus, the market is all set to garner the valuation of US$ 206.1 Bn by the end of 2031.
Microgrid refers to a localized grid with an ability to connect and disconnect with conventional utility grids in order to offer superior level of grid resilience and reliability. Thus, microgrid works as an interconnection between loads within well-defined electric boundaries and distributed energy sources. Microgrids can be operated autonomously; therefore, they are increasingly utilized throughout major grid failures. Thus, the device assists in mitigating risks occurring due to grid failures and disturbances. Based on connectivity, the global microgrid market can be segregated into grid-tied (grid-connected) and off-grid.
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Advantages of Microgrids to Fuel Demand
Microgrids are gaining traction owing to a wide range of advantages they offer. Integration of distributed energy generation sources, including renewables, integration of several smart grid technologies, and grid modernization are some of the key advantages of microgrids. Moreover, the device assists in providing local loads with the help of local power sources. This allows minimizing distribution and transmission losses, thereby achieving increased overall efficiency of system.
Microgrids work as a helpful tool to macrogrids, as they can handle power inconsistencies from regional renewable sources and provide ancillary services to bulk power systems and sensitive loads. Owing to all these advantages, there is extensive growth in product utilization across varied applications such as community & utility, campus & institution, defense & military, remote island, and commercial & industrial sectors. This is expected to generate promising sales avenues in the global microgrids market in the forthcoming years.
Increase in Usage of Microgrids during Critical Weather Conditions to Boost Market
Macrogrids have to deal with the issue of grid instability during critical weather conditions as well as natural disaster situations. In this scenario, microgrid work as a helpful tool. On-site microgrid systems are gaining traction, owing to their capability to be used during floods, earthquakes, and tornadoes. In addition, these systems are increasingly utilized as substitutes for traditional grids during power outage. Government bodies of many countries from all across the globe are focusing on the strategic use of microgrids near hospitals, pharmacies, gas stations, grocery stores, and police stations in order to deal with various emergency situations.
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