A new report released by energy market research firm Guidehouse Insights analyses which microgrids segments may benefit from COVID-19 and which segments will likely suffer.
The report, COVID-19: Which Microgrid Segments Benefit – Which Suffer?, discusses why these market trends should shape how vendors, utilities, and prosumers view near- and long-term microgrid opportunities.
There are short- and long-term ramifications, but discernable evidence points toward overall double-digit growth in microgrids despite a severe global recession due to the pandemic.
Although near-term impacts include project delays in 2020 likely extending into 2021, the longer-term picture for microgrids will likely benefit from COVID-19.
The pandemic is just another in a growing list of global disruptions to business as usual, including climate change (and resulting extreme weather), wildfires, and increased terrorist attacks on public infrastructure.
Besides a shock to business as usual that rippled through the global economy, one of COVID-19’s most visible impacts on the energy industry was a steep drop in demand (and corresponding price) for oil.
This created questions around how the pandemic is affecting electricity markets and, more specifically, emerging digitization platforms such as microgrids.
To position for success, stakeholders in the microgrid ecosystem should look for projects that support vital medical and other fundamental infrastructure needs and focus on market segments that benefit from shelter at home, social distancing, and remote employee trends.
The report also recommends choosing cleaner distributed energy resources (DERs) for microgrid projects and seeking out adjacent market opportunities with DER assets such as virtual power plants (VPPs).
Peter Asmus, research director with Guidehouse Insights, said: “This growth will be characterized by uneven impacts on different market segments and the desirability of different DER options.
“Furthermore, although near-term impacts include project delays in 2020 likely extending into 2021, the longer-term picture for microgrids will likely benefit from COVID-19.”
Read more about the COVID-19: Which Microgrid Segments Benefit – Which Suffer? report.