Grid edge market to reach US$14.5bn by 2024 – Navigant Research

Global Grid edge technology market
Navigant Research predicts that market liberalization will result in fewer centralized power plants driving the need for grid edge technology

Global revenue for grid edge technologies for the integration of distributed energy resources (DER) is expected to reach US$14.5 billion annually by 2024, according to a new report from Navigant Research.

The study points to market liberalization, economic pressures, and environmental regulations as drivers towards fewer centralized power plants and more DER to address future energy needs.

Navigant said as DER penetration increases, utilities are expected to adopt grid edge monitoring and control technologies, enabling the proactive development of markets for aggregated clean resources and services, service-oriented business models, and end-to-end integrated grid management strategies.

Lauren Callaway, research analyst with Navigant Research, said: “There is a growing need for more intelligence, control, and agility in the distribution grid, particularly at the edge, where many new disruptive resources and loads are located.

“This means leveraging existing advanced metering infrastructure (AMI) networks and legacy control systems, in addition to deploying emerging technologies that are uniquely designed to optimize the grid in the presence of DER.”

Change to utility model

As the DER landscape continues to evolve, exchanges between vertical and horizontal actors are becoming more common, according to the report.

The traditional, vertically integrated utility model is eroding to differing degrees regionally, and power management and delivery is increasingly peppered with outside horizontal offerings in the form of both business-to-business and business-to-consumer solutions.

The report, Grid Edge Intelligence for DER Integration, provides an assessment of current market drivers and inhibitors, regional trends, technology, and business segments related to grid edge technologies for DER integration, in addition to business recommendations for both vendors and utilities.