COVID-19: Which Microgrid Segments Benefit - Which Suffer?
COVID-19 has affected the economy in many unforeseen ways. Besides a shock to business as usual that rippled through the global economy, one of its most visible impacts on the energy industry was a steep drop in demand (and corresponding price) for oil. But how has COVID-19 affected electricity markets and, more specifically, emerging digitization platforms such as microgrids? What fresh opportunities are presenting themselves in the microgrid space due to COVID-19? How should the microgrid solution ecosystem plan accordingly?
There are short- and long-term ramifications, but discernable evidence points toward overall double-digit growth in microgrids despite a severe global recession. Yet, that growth will be characterized by uneven impacts on different market segments and the desirability of different distributed energy resources (DER) options. Furthermore, although near-term impacts include project delays in 2020 likely extending into 2021, the longer-term picture for microgrids will likely benefit from COVID-19. The pandemic is just another in a growing list of global disruptions to business as usual, including climate change (and resulting extreme weather), wildfires, and increased terrorist attacks on public infrastructure.
This Guidehouse Insights report examines which microgrid segments may benefit from COVID-19 and which segments will likely suffer. It discusses why these market trends should shape how vendors, utilities, and prosumers view near- and long-term microgrid opportunities. Guidehouse Insights then provides detailed and actionable recommendations for the microgrid industry ecosystem to adjust future strategies accordingly.