Micro grid Integration Market

Market Overview

The Global Micro grid Integration Market size is slated to grow substantially at a CAGR of 9.7% during forecast period.

The process of integrating a micro grid, which is a localized energy system, into a larger power grid or other existing energy infrastructure, is referred to as micro grid integration. A micro grid can run independently or in cooperation with the larger grid and is often made up of traditional power generators, energy storage devices, and renewable energy sources.

A wide range of applications, including industrial and commercial buildings, military installations, outlying villages, and vital infrastructure like hospitals and data centres are all adopting microgrid integration. Increased energy efficiency, cost savings, and enhanced energy security are all advantages of microgrid integration.

A variety of technologies, such as smart grid technologies, energy management systems, and power electronics, are used to integrate microgrids into the current energy infrastructure. Due to the rising need for dependable and resilient energy systems, as well as the requirement to cut carbon emissions and lessen the effects of climate change, this industry is expanding.

Market Dynamics

Market Drivers

• More dependability and resilience

As the globe becomes more connected and electricity-dependent, the demand for reliable and resilient energy systems is becoming more and more critical. In the event of power outages or other interruptions, micro grids can run independently or in tandem with the broader grid. This could increase the energy system's dependability and resilience.

• Decreased carbon emissions

Micro grids frequently use renewable energy sources like solar and wind energy, which can aid in lowering emissions while fostering sustainability. The proliferation of microgrids, which often include renewable energy sources like solar and wind power, is being driven by the global transition towards renewable energy sources. By utilising greener energy sources, microgrids can aid in lowering carbon emissions and promoting sustainability.

• Energy Security

Energy security is becoming more and more important as natural catastrophes and other energy system disruptions occur with greater regularity and severity. Energy security for critical infrastructure, such as hospitals and data centres, can be improved with the help of microgrids, which can offer localised energy solutions that are less susceptible to interruptions in the wider grid.

Market Restraints

• The inability to scale

Microgrids can be built to satisfy particular energy needs, but their potential to scale up depends on the availability of renewable energy sources and the size of the energy storage infrastructure. The size of the microgrid may be constrained in regions with a dearth of renewable energy sources, making it challenging to supply the energy requirements of bigger towns or enterprises.

• High initial costs

The cost of engineering and design, as well as the necessity for specialist equipment like energy storage systems and power converters, can make installing and implementing microgrid systems expensive. Particularly for smaller businesses or isolated areas with little financial means, this high upfront cost might be a substantial obstacle to adoption.

• Regulatory obstacles

Organizations looking to install microgrid systems may encounter difficulties due to the complicated and regionally varied regulatory environment for microgrids. There may be stringent laws limiting the construction and operation of microgrids in some areas, or there may be little financial incentives for businesses to switch to alternative energy sources. Because of this, it may be challenging for businesses to defend the expense of installing a microgrid system.

Market Opportunities

• Rising Need for Energy

The market for microgrid integration is driven by the rising need for energy storage technologies. To store extra energy produced by renewable sources and use it during times of high demand or when renewable sources are not available, microgrids can contain energy storage technology, such as batteries. This could contribute to greater energy efficiency and a decrease in dependency on fossil fuels.

• Provides secure source of electricity

Extreme weather events like hurricanes and wildfires are occurring more frequently and with greater severity, which has brought attention to the need for more adaptable and robust energy infrastructure. Critical facilities like hospitals and emergency services can continue to function during severe catastrophes thanks to microgrids, which can offer a dependable and secure source of electricity.

• Energy Storage Solution

The market for microgrid integration is driven by the rising need for energy storage technologies. To store extra energy produced by renewable sources and use it during times of high demand or when renewable sources are not available, microgrids can contain energy storage technology, such as batteries. This could contribute to greater energy efficiency and a decrease in dependency on fossil fuels.

Market Scope

Segmental Analysis

Segment by Type

• Grid-Tied

Grid-tied microgrids can provide a number of benefits, including increased energy efficiency, reduced costs, and improved reliability. By integrating renewable energy sources such as solar and wind power into the microgrid, grid-tied systems can help to reduce reliance on fossil fuels and lower greenhouse gas emissions.

• Independent

Increased energy independence, higher reliability, and increased resilience are just a few advantages that independent microgrids can offer. Independent microgrids can assist in reducing dependency on fossil fuels and reducing greenhouse gas emissions by incorporating renewable energy sources like solar, wind, or hydro power.

Segment by Application

• Commercial/Industrial Microgrid

Increased energy efficiency, lower costs, and enhanced dependability are just a few advantages that commercial and industrial microgrids can offer. A particular kind of microgrid system called a commercial or industrial microgrid is created to suit the energy needs of commercial or industrial buildings like factories, data centres, or office buildings

• Community/Utility Microgrid

The advantages of community and utility microgrids can include greater energy independence, higher dependability, and increased resilience. A particular kind of microgrid system created to address the energy requirements of a community or utility service region is known as a community or utility microgrid.

• Campus/Institutional Microgrid

Campus and institutional microgrids can offer a variety of advantages, such as enhanced reliability, cost savings, and increased energy efficiency. Microgrids can help to lessen dependency on fossil fuels and minimise greenhouse gas. The energy requirements of a campus or institutional facility, such as a university, hospital, or military base, can be satisfied by a campus or institutional microgrid, a particular kind of microgrid system.

• Military Microgrid

Increased energy independence, higher security, and improved resilience are just a few advantages that military microgrids can offer. Depending on the requirements of the military facility, these microgrids can run independently or connected to the broader electrical grid.

• Remote Microgrid

An off-grid or distant community that is not connected to a larger electrical grid can get power via a remote microgrid system, a particular form of microgrid system.

Regional Analysis

The Global Micro grid Integration Market is segmented by region as North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

North America

The rising demand for renewable energy sources, the requirement for energy security and resilience, and government incentives and laws that favour the development of microgrids,  for instance, The IEA was established to provide reliable and inexpensive energy supplies, and it performs studies on potential threats to the oil supply now and in the future, new security issues with regard to gas, and ways to make the power sector's systems more flexible and resilient. North America now has the greatest market for microgrid integration.

Europe

Europe is also a significant market for microgrid integration, with a growing focus on energy efficiency, sustainability, and decarbonization driving demand for microgrid systems. Government is also taking initiatives The European Green Deal lays forth a plan for reducing greenhouse gas emissions while fostering a cutting-edge, resource-conserving economy. The Energy System Integration Strategy and the Hydrogen Strategy, which outline how to update the energy markets, including the decarbonization of the production and consumption of hydrogen and methane, are two of the initiatives included to achieve this goal. The region has also seen a rise in the number of smart city initiatives that incorporate microgrids as a key component.

Asia Pacific

The Asia Pacific region is expected to see significant growth in the microgrid integration market due to factors such as rapid urbanization, increasing demand for energy, and a growing focus on renewable energy sources. China and India, in particular, are expected to be key markets for microgrid integration due to their large populations and significant energy needs.

Key Players

1. ABB
2. GE
3. Echelon
4. Raytheon
5. S&C Electric Co
6. Eaton Corporation　
7. Sunverge Energy
8. Siemens
9. Toshiba
10. General Microgrids
11. Lockheed Martin

Recent Developments

Jan-2023 Siemens, a leading provider of global mobility solutions, and Indian Railways have teamed to construct 1,200 high-horsepower electric locomotives for an estimated total cost of Rs 26,000 crore.