Record Number of Microgrids Installed in US Last Year: WoodMac

Jul 23, 2020 04:24 PM ET
  • 546 microgrids were mounted in the United States during 2019, greater than any previous year, according to new study from Wood Mackenzie.

546 microgrids were set up in the United States throughout 2019, greater than any kind of previous year, according to new study from Wood Mackenzie. 3 organizations-- PowerSecure, Enchanted Rock as well as The American Red Cross-- mounted a mixed 67 percent of these projects.

Though the systems mounted by PowerSecure and Enchanted Rock were almost all fundamental, Red Cross' systems rely upon Blue Planet Energy's power storage solution. These are some of the first mass deployments of solar-plus-storage at non-residential places that are designed to power institutions for more than 24 hours.

While 2019 saw a record variety of microgrids systems mounted, annual ability was down 7 percent from 2018.

"Most of the systems installed last year were below 5 MW. This is part of a larger pattern we are seeing. The market has moved from being led by projects above 5 MW pre-2017 to smaller sized systems starting in 2017. Technology-neutral microgrid designers are taking notice as well as developing more modular styles," said Isaac Maze-Rothstein, Wood Mackenzie Research Analyst as well as report writer.

Dispersed nonrenewable fuel source generation accounted for 86 percent of set up microgrid capacity in 2019, according to the record.

"Although a lot of the power distributed through microgrids originated from fossil fuel generation last year, we believe that microgrids in the US will end up being progressively dependent on renewables modern technologies. Via our five-year projection we are positive that solar, wind, hydropower and power storage will certainly grow to account for 35 percent of annual set up ability by 2025," included Maze-Rothstein.

In spite of 2019 capacity whipping Wood Mackenzie's projection assumptions, the overview via 2025 is more conventional as a result of coronavirus impacts. The very first fifty percent of 2020 was the slowest begin to the year for the microgrid market given that 2016.

Shelter-in-place orders and also social distancing have actually currently postponed allowing, engineering, building and construction and also interconnection processes for creating microgrids.

"While these challenges are being really felt now, some programmers have expressed worries around stemming new deals as some consumers wait to see exactly how the pandemic and economic downturn impact their core business. Our overview for the next two years has actually been lowered largely because of project delays.

"Starting in the 2nd fifty percent of 2022, we expect to see the challenges of coming from new deals during 2020 impacting capacity additions via 2024," stated Maze-Rothstein.

Solar Installers, Manufacturers