Decreasing renewable energy prices, technological innovations and increased adoption of energy storage are just some of the factors that will continue to drive the deployment of energy access microgrid projects in emerging markets, according to a new report from Guidehouse.
Where growth is the fastest
The Asia Pacific (APAC), as well as the Middle East and Africa (MEA), will be the fastest growing regions in terms of revenue from microgrid investments, with APAC reaching $7.7 billion by 2031 and MEA topping $8.9 billion, according to the report Market Data: Microgrids for Energy Access in Emerging Markets.
Latin America is forecast to reach $5.2 billion, led by the Caribbean countries and territories so often in the path of devastating weather events.
Europe is expected to be the slowest energy access microgrid market as the region focuses more on virtual power plants than microgrids.
Microgrids provide energy access to the underserved
According to the WorldBank, nearly 733 million people in the world do not have access to electricity. Basic energy access for 100% of the global population by 2030 is one of the United Nation’s 17 critical Sustainable Development Goals (SDG).
Rohith Unni, research analyst with Guidehouse Insights says, “based on the current rate of progress, that goal will fall far short by 670 million people.”
Unni goes on to say that “novel energy management systems, innovative remote monitoring capabilities, and advances in smart meter and modern energy storage technologies” make microgrids a viable solution for connecting underserved populations.
Microgrid solutions can be implemented quickly, cost effectively, and sustainably, Unni says, and they can rapidly improve the socioeconomic situations of underserved populations.
Guidehouse also tracking microgrid jobs
In 2021, Guidehouse released an economic report quantifying how microgrids translate into jobs. It was the first report of its kind.
The report found that renewable microgrids will generate 500,000 new jobs in the US by 2030, as well as $72 billion in GDP growth and $146 billion in sales across the supply chain.
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