Utility Distribution Microgrids

Utility Distribution Microgrids
Summary
Utilities across the United States are deploying utility distribution microgrids (UDMs) in order to explore new market opportunities in the emerging distributed energy resources (DER) landscape. Previously opposed to the concept of intentional islanding, utilities are now exploring microgrids thanks to recent technology advances such as smart inverters, smart switches, and new DER control platforms. Rather than being focused on providing economic value and resiliency benefits to behind-the-meter customers, UDMs can enable utilities to manage DER portfoli's to bolster reliability at the distribution level of power service.
In 2015, 29 MW of new UDM capacity was deployed across the United States, representing an estimated $161 million in implementation revenue. By 2024, those numbers are expected to increase to 241 MW annually, with corresponding annual revenue of $917 million. Microgrids operated/owned by utilities can serve the distribution grid first (and be a platform for new services). UDMs can also be seen as vehicles to help utilities address DER deployment trends to their advantage. Yet, UDM adoption is dependent upon regulatory reforms, natural disasters, and customer adoption rates of DER such as solar PV and energy storage. As such, UDMs will only be deployed for a very small portion of the broad addressable market over next decade.
This slide-based Navigant Research Utility Technology Disruption Report examines the UDM market in the United States, with a focus on technology and policy trends, customer adoption, utility deployments, and the vendor landscape. Cost curve projections and adoption forecasts are provided through 2024. Featuring Navigant Research?s Utility Technology Disruption Matrix and Execution Grid, the report also examines implications for traditional utility business models, provides utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success.