DER Deployments for Microgrids: Regional Market Forecasts on Capacity and Revenue for Nine DER Technologies

The driving force behind microgrid deployments is the growth in a wide variety of distributed energy resources (DER). As one of many options to aggregate and optimize DER, the microgrid platform allows for new levels of resilience and reliability. These options are of special value in light of emerging threats to global power grids, extreme weather events, earthquakes, wildfires, and terrorist threats. At the same time, microgrids can help organize mixed asset fleets of DER at the distribution network level. With the right set of controls technologies, this platform can not only offer value streams to site hosts and other microgrid customers but also provide value upstream to the larger grid. It is in this latter function that microgrids overlap with other networking platforms such as virtual power plants (VPPs) and DER management systems.

The availability of government support for microgrids is clearly affected by the design of incentives and subsidies for the gamut of available DER technologies that could be integrated into a microgrid. Support for DER assets will increase the viability of microgrids in any particular region. However, some forms of support can counterintuitively limit future microgrid applications. Furthermore, in some cases, a decline in subsidy support, particularly for renewable generation technologies, can surprisingly create incentives for microgrids.

This Guidehouse Insights report focuses on how each of the following nine DER assets are being deployed across each region of the world: biomass, diesel generation sets (gensets), energy storage, fuel cells, hydropower, microturbines, natural gas gensets, solar PV, and wind. This report provides capacity and revenue forecasts for these technologies from 2020 through 2029.

KEY QUESTIONS ADDRESSED:

• Which DER technologies will be the most commonly deployed assets in 2020?

• How does the mix of DER assets incorporated into microgrids change over time?

• What are the key standards that affect microgrid integration with DER assets?

• Why are solar PV and energy storage the leading DER choices for microgrids?

• Which regions of the world lean toward which DER options?

• Which DER technology is the leading source of revenue by 2029?

• What is the total value of leading DER assets being rolled into microgrids in each year over the coming decade?

WHO NEEDS THIS REPORT:

• Manufacturers of DER technologies
• Energy storage vendors
• Solar PV companies
• Microgrid developers
• Microgrid integrators
• Utilities
• Regulators
• University researchers
• Investor community

Table of Contents

1. Executive Summary

• 1.1. Distributed Energy Resources for Microgrids
• 1.2. Market Forecast

2. Market Issues

• 2.1. Microgrid Definitions, Policy Trends, and Technology Standards
• 2.2. Shifting Government Support Structures for DER Technologies
  • 2.2.1. Market Drivers
  • 2.2.2. Market Barriers
• 2.3. Key Technology Standards
  • 2.3.1. Underwriters Laboratories 1741 Safety Standards for Grid Devices
  • 2.3.2. The IEEE 1547 Standards Series
  • 2.3.3. IEEE Standards for Energy Storage
  • 2.3.4. DOE Microgrid Controller Standards
  • 2.3.5. International Electrotechnical Commission Standards for T&D Systems and Interoperability
  • 2.3.6. EMerge Alliance Direct Current Standards
• 2.4. Policy Support for Microgrids
  • 2.4.1. Top Country Markets

3. Technology Issues

• 3.1. DER Inventory and Value Analysis
  • 3.1.1. Biomass
  • 3.1.2. Diesel Gensets
  • 3.1.3. Energy Storage
  • 3.1.4. Fuel Cells
  • 3.1.5. Hydropower
  • 3.1.6. Microturbines
  • 3.1.7. Natural Gas Gensets
  • 3.1.8. Solar PV
  • 3.1.9. Wind
• 3.2. Assessing DER Options for Microgrid Applications

4. Key Industry Players

• 4.1. DER Microgrid Innovators
  • 4.1.1. Biomass - Husk Power
  • 4.1.2. Diesel Gensets - PowerSecure
  • 4.1.3. Energy Storage - Tesla Energy
  • 4.1.4. Fuel Cells - Bloom Energy
  • 4.1.5. Microturbines - Capstone Turbine Corporation
  • 4.1.6. Natural Gas Gensets - Tecogen
  • 4.1.7. Hydro - BladeRunner Energy
  • 4.1.8. Solar PV - REC Solar
  • 4.1.9. Wind Turbines - Bergey Windpower

5. Market Forecasts

• 5.1. Forecast Methodology
  • 5.1.1. Microgrid Capacity
  • 5.1.2. DER Asset Revenue
• 5.2. DERM: Technology Segment Forecasts
• 5.3. DERM Inventory Forecast
  • 5.3.1. Biomass Steam Turbines
  • 5.3.2. Diesel Gensets
  • 5.3.3. Energy Storage
  • 5.3.4. Fuel Cells
  • 5.3.5. Hydro
  • 5.3.6. Microturbines
  • 5.3.7. Natural Gas Gensets
  • 5.3.8. Solar PV
  • 5.3.9. Wind
• 5.4. Conclusions and Recommendations

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

LIST OF CHARTS AND FIGURES

• Microgrid DER Capacity and Revenue by Region, World Markets: 2020-2029
• Selected DER Capacity by Technology, World Markets: 2020
• Selected DER Capacity by Technology, World Markets: 2029
• Annual Biomass Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Diesel Genset Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Energy Storage Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Fuel Cell Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Hydro Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Microturbine Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Natural Gas Genset Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Solar PV Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Annual Wind Microgrid Capacity and Revenue by Region, World Markets: 2020-2029
• Microgrid: Networks of Static DER with Point of Common Coupling
• Hierarchy of Grid Standards: PCC Is Where Microgrids Play
• DERM Technology Maturation Index

LIST OF TABLES

• Annual Total Microgrid Capacity by Region, Base Scenario, World Markets: 2020-2029
• Annual Total Microgrid Revenue by Region, Base Scenario, World Markets: 2020-2029
• Selected DER Capacity by Technology, World Markets: 2020
• Selected DER Capacity by Technology, World Markets: 2029
• Annual Biomass Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Biomass Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Diesel Genset Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Diesel Genset Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Energy Storage Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Energy Storage Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Fuel Cell Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Fuel Cell Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Hydro Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Hydro Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Microturbine Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Microturbine Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Natural Gas Genset Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Natural Gas Genset Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Solar PV Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Solar PV Microgrid Revenue by Region, World Markets: 2020-2029
• Annual Wind Microgrid Capacity by Region, World Markets: 2020-2029
• Annual Wind Microgrid Revenue by Region, World Markets: 2020-2029
• Installed Cost Characteristics of DG for Microgrids: 2020
• Biomass Steam Turbine SWOT Analysis
• Diesel Gensets SWOT Analysis
• Energy Storage SWOT Analysis
• Fuel Cell SWOT Analysis
• Hydro SWOT Analysis
• Microturbine SWOT Analysis
• Natural Gas Genset SWOT Analysis
• Solar PV SWOT Analysis
• Wind SWOT Analysis