Nanogrids, which are even smaller versions of microgrids, can serve as modular building blocks for energy applications that range from emergency power for commercial buildings to the provision of basic electricity services for people living in extreme poverty. North America is the leading region for microgrids today, but the largest and fastest growing nanogrid markets are remote systems operating in the developing countries of Asia Pacific, the Middle East, and Africa. According to a recent report from Navigant Research, worldwide installations of nanogrid capacity will grow from nearly 8,900 megawatts (MW) in 2014 to 14,200 MW in 2023 – an increase of 60 percent.
However, nanogrids are big business. While microgrids exhibit exponential growth and share synergistic properties with many nanogrid segments, substantial deployments of nanogrids are already in place. This is because they actually face less technical and regulatory barriers than their microgrid counterparts. Nanogrids can be synergistic with the growing movement toward enhancing resiliency and therefore complement microgrids, but there are times and situations when microgrids and nanogrids will be competing for the same customers. Despite the small scale of nanogrid solutions, a number of familiar names are active in these nanogrid markets, among them Bosch, Eaton, Emerson Network Power, Johnson Controls, and NRG Energy. Navigant Research forecasts that global nanogrid vendor revenue will grow from $37.8 billion in 2014 to $59.5 billion in 2023.
“Nanogrids have the ability to fill increasingly important niches within the larger power sector, and the adoption of distributed generation is opening up new, underserved markets for these systems,” says Peter Asmus, principal research analyst with Navigant Research. “The simplicity of these solutions makes the technology requirements for nanogrids less complex than those for either microgrids or the utility-centric smart grid.”
The report, “Nanogrids”, analyzes the emerging global market for nanogrids, with special emphasis on contrasting nanogrids with microgrids. It provides an analysis of the market issues, including business cases and implementation challenges, associated with nanogrids. Global market forecasts for capacity and revenue, broken out by subsegment and region, extend through 2023. The report also examines the key technologies related to nanogrids, as well as the competitive landscape.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
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