Microgrids
form a part of the Distributed Energy Resources (DER) systems, which
is basically a decentralized or district oriented energy. Energy is
generated and stored through a range of devices connected by the DER.
The microgrid is concerned with localized grouping of power
production, storage and distribution. The loads are usually connected
to a typical centralized grid, or a macrogrid. The microgrid’s
point of common coupling can be disconnected to allow it to function
autonomously. This means that a microgrid can be controlled remotely
as though it were an individual unit while still being part of a
larger grid.
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About
the Microgrid Market
The
primary purpose of a microgrid is to provide energy to localized
distribution systems. The advantage that a microgrid adds to the
energy system is that it can be operated either autonomously or
non-autonomously, which means that a microgrid can not only work
ceaselessly for a localized system, but can also supply power back to
the macrogrid should it ever be interrupted. The microgrid can use
the power generated locally for this purpose.
Microgrid
Market Segmentation
The
general categories in the microgrid market are product, application,
and region. By product, the microgrid market is divided into:
- Grid-tied/Grid-connected
- Remote/Off-grid
A
grid-tied microgrid can function either with or without a connection
to the main grid. They can therefore work in both autonomous and
dependent modes. On the other hand, remote grids are specifically
designed to be used in areas that have a low tiered, or even absent,
grid infrastructure.
The
application segment of the microgrid market observes the following
sub-segments:
- Community and utility
- Defense and military
- Campus and institutions
- Commercial and industrial
- Remote islands
Microgrid
Functionalities and Market Drivers
Some
of the crucial aspects that enable a microgrid to function
autonomously are:
- Communication (sensors, smart meters, and IT communication)
- Field components (energy storage, distributed generation, and grid components)
- System (smart controller and power electronics)
- Control (central management and control)
- Supervisory
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Microgrids
offer stable and consistent benefits to its investors and
stakeholders. This creates a unique position for the microgrid market
wherein it can help transition regions or even countries towards
cleaner emissions. This shift towards greener methods is one of the
larger driving forces in the global microgrid market, mostly due to
the greater need of microgrids to employ a fully effective and
cleaner DER. The other advantages or growth factors that the
microgrid market possesses include the creation of new avenue of
research and development, thereby creating more jobs. Microgrids can
help in the electrification of emerging and remote locations as well.
Due to their remote access capability, it can be used as a DER for a
local system.
Other
drivers for the microgrid market are the growing demand for power,
added to which is the need for reliable, secure, and pollution free
power. The advantage of being able to work independently due to
energy storage devices makes them extremely useful in geographically
remote locations and not be connected to a macrogrid.
The
most common places of use for microgrids are in military bases,
educational institutions, and commercial and industrial users that
work in a remote location. All these locations face the problems of
power outages, volatile costs, uneven supply of fossil fuels, and
even energy theft, making the option of establishing a microgrid all
the more appealing.
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Key
Players
Most
of the top companies in the global microgrid market are from North
America and Europe. As more investments are seen in the Asia Pacific
region, one can anticipate its microgrid market to improve
substantially. Some of the top companies include Viridity Energy,
Inc., Schneider Electric, Toshiba Corporation, and Honeywell
International.
All
in all, North America leads the microgrid market due to its heavy use
in campuses and defense activities. Larger investments in Europe and
Asia Pacific are set to make them the market drivers in the near
future. Most countries are able to provide relaxed policies, making
the use of microgrids a distinct possibility.
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