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Campus Environments to Remain the Leading Market for Microgrids

September 1, 2011
Campus Environments to Remain the Leading Market for Microgrids

August 30, 2011 - Microgrids, which are pockets of distributed energy resources that can be isolated from the utility power grid, represent an attractive option for single-owner campus environments.

Campus microgrids, and especially educational institutions, are currently the leading segment of the microgrid market in terms of actual online operating capacity.

Interest in microgrids is now spreading beyond the educational institution market to other campus segments, as well, including commercial, government, healthcare, industrial, and research campus markets.

A new report from Pike Researchforecasts that total installed generation capacity for campus microgrids will increase by 164% between 2011 and 2017, rising from 620 megawatts (MW) to 1.6 gigawatts (GW). By the end of the forecast period in 2017, the cleantech market intelligence firm anticipates that the campus microgrid market will reach $777 million in annual revenue.

"Microgrids offer a compelling opportunity for facilities managers in single-owner campuses to take more direct control of their electricity supply," says senior analyst Peter Asmus.

"Energy and facilities managers for educational institutions, corporate campuses, medical campuses, and other campuses are increasingly turning to distributed energy generation, both from renewable and fossil fuel sources, using a broad array of microgrid configurations."

Asmus adds that, for a variety of reasons, the United States represents the best overall market for microgrids in most application segments. Key factors include pockets of poor power quality scattered throughout the U.S. and the structure of markets for distributed energy resources.

The latter, says Asmus, has stimulated creative aggregation possibilities behind the meter at the retail level of power service. Instead of being driven by grid operators, the microgrid market in the U.S. is customer-driven. Pike Research's analysis concludes that these U.S. market dynamics will be instrumental in the identification of business and technology models that may be applied to campus microgrids around the world in years to come.

Pike Research's report, "Microgrids for Campus Environments", examines current market dynamics, as well as the longer-term market potential, for campus microgrids in the commercial, education, government, healthcare, industrial and research campus application segments.

The study analyzes the demand-side dynamics that are driving increased interest in campus microgrids, the key enabling technologies for these systems, and the industry players who are shaping this emerging market.

Market forecasts for installed capacity and revenue are provided through 2017, segmented by world region and campus type. An Executive Summary of the report is available for free download on the firm's website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets.  For more information, visit www.pikeresearch.com

Source: www.pikeresearch.com
 
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