BOULDER, Colo.–(BUSINESS WIRE)–A new report from Navigant Research analyzes 10 emerging business models for the microgrid market, providing insight on the strategies, maturity, and financial opportunities attached to each development pathway.
Microgrids have the ability to play a role in realizing greater utilization of existing generation and resources by enabling networking and sharing of resources to match loads. Yet, resiliency services enabled by technology are not free, and each microgrid segment leans toward a different business model. Click to tweet: According to a new report from Navigant Research, the modularity and highly variable configurations of microgrids make calculating an overall return on investment for all microgrids virtually impossible, and as a result, the business cases for microgrids to continue to evolve.
“There is no single dominant microgrid business model, given the diversity of application segments and regulatory landscapes in different regions of the world,” says Peter Asmus, principal research analyst with Navigant Research. “Yet changes in the marketplace, including the Power Purchase Agreement (PPA) and the prevalence of software as a service, are pointing in the direction of a few models as likely to become more common over time.”
The majority of the microgrids operating today have been pilot projects or experiments, and the industry is now moving into the next phase of project development. According to the report, the key to future growth rests with greater flexibility in regulation and public policy that, in turn, are spawning business model innovation from market players both large and small.
The report, Emerging Microgrid Business Models, examines the latest thinking among utilities, technology vendors, and regulators about emerging business models that can take the global microgrid market to the next level. The study explores 10 different business models being applied to this market today. It also provides an analysis of how different microgrid market segments gravitate toward different development strategies that reflect preferred resource mixes, existing contracting vehicles, and lessons learned from adjacent markets such as solar PV and energy storage. Tables included in the report highlight which of these models are being applied to different microgrid markets, as well as the relative maturity and financial opportunity attached to each development pathway. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Emerging Microgrid Business Models, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.