Global microgrid market to reach 191 billion dollars by 2033

Estimated at 40.9 billion dollars in 2024, the global microgrid market is expected to grow at an average annual rate of 19.28% to reach 191.01 billion dollars by 2033, driven notably by innovative energy contracts.

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The global microgrid sector is experiencing notable growth driven by an increase in large-scale projects, benefiting from a supportive regulatory and technological environment. These local energy systems, combining energy production and storage, appeal to diverse actors such as municipalities, university campus managers, and industrial operators.

Innovative energy contracts

In the United States, the Energy-as-a-Service (EaaS) model, popularized by ENGIE North America, allows integrators to retain asset ownership while ensuring precise performance metrics, such as outage durations or emission intensity. Such contracts currently represent over 480 MW in universities, data centres, and ports, generating stable financial flows through the sale of surplus energy and ancillary services.

Additionally, the market is exploring energy trading platforms that enable real-time exchanges. In Australia, for example, Project EDGE redirects excess solar energy from homes to nearby businesses at dynamic rates, demonstrating financial efficiency superior to static feed-in tariffs in most cases.

Mature technological standards

The market also benefits from increased technological standardization. The new IEEE 2030.7/8 standards clearly define hierarchical control functions, while the Open Field Message Bus protocol enhances timestamp accuracy for decentralized state estimation. By mid-2024, more than 65 manufacturers had certified their equipment compliant with SunSpec Modbus profiles, facilitating technical integrations.

In parallel, facing rising cybersecurity concerns, the sector is now widely adopting “zero-trust” security principles. Critical sites such as those in Los Angeles County thus integrate secure modules and encrypted communications in accordance with recommendations from the U.S. Cybersecurity and Infrastructure Security Agency.

Diversification of energy sources

The microgrid market now incorporates an expanded range of energy technologies beyond classic diesel-solar hybrid systems. Rolls-Royce’s mtu division recently launched a 2 MW methanol-ready genset suitable for autonomous or grid-connected operations. Bloom Energy is deploying solid oxide fuel cells in South Korea, having already exceeded 100,000 operating hours.

This evolution also includes innovations in energy storage, such as zinc-air batteries and sodium-ion packs. In the United States, the Redwood Coast Airport microgrid in California is now producing renewable hydrogen for a local bus depot, illustrating the versatility and rapid technological evolution within the sector.

Accelerated global deployment

According to the international research consortium EMPower, approximately 9 GW of additional capacity was commissioned between January 2023 and April 2024, raising global installed capacity to nearly 46 GW. Industrial sites, such as Rio Tinto’s location in Western Australia, are adopting these systems to secure production against grid instabilities.

This global growth is also notable in emerging countries. In Sub-Saharan Africa, the sector has already installed over 6,500 systems in villages, thereby serving more than 17 million residents previously without access to electricity. These installations demonstrate the microgrids’ effective response to diverse economic needs across various regions worldwide.

Akuo launches a large-scale electricity storage project in Boulouparis, with a 200 MWh capacity, to support New Caledonia’s grid stability and reinforce the integration of renewable energies.
Spie and Tesla have signed a framework agreement to install battery electricity storage systems in Europe, focusing on France, Poland and Germany.
The group has won a strategic project with operator Amprion to deploy five 50 MW batteries to ease pressure on the German power grid and optimise electricity transmission.
Vena Energy has begun construction of a 408 MWh battery energy storage system in Tailem Bend, marking a new phase in the deployment of its infrastructure in Australia.
The explosion of battery storage applications in Germany is causing grid congestion and pushing Berlin to revise its regulatory framework to prevent market saturation.
The collapse in storage costs positions batteries as a key lever for dispatchable solar, but dependence on Chinese suppliers creates growing tension between competitiveness and supply chain security.
JA Solar has launched a microgrid combining 5.2 MW of solar and 2.61 MWh of storage at an industrial site in Sicily, marking its first application of the "PV+Storage+X" model in Italy.
Sinexcel has installed a 2MW/8MWh energy storage system in Matsusaka, marking a breakthrough in a regulated market after five years of technical partnerships and gradual deployment in Japan.
Inlyte Energy has successfully completed factory validation testing of its first full-scale iron-sodium battery, witnessed by Southern Company, paving the way for a pilot installation in the United States in early 2026.
Neoen begins construction of a new 305 MW stage in Australia, raising its total battery storage capacity in the country to 2 GW, and signs two additional virtual battery contracts with ENGIE.
California-based battery manufacturer South 8 Technologies has secured $11mn to boost production of its LiGas cells, targeting military and space applications under extreme conditions.
Samsung SDI will supply LFP cells for energy storage systems in the United States starting in 2027, under a multi-year deal valued at $1.53bn.
Bitzero Holdings launches a new 70 MW expansion phase in Namsskogan, Norway, targeting a total capacity of 110 MW and an upgrade of its high-performance computing capabilities.
Remixpoint and Nippon Chikudenchi have formalised a partnership to develop seven 2MW/8MWh BESS facilities by October 2026 through a newly established joint venture.
UK-based Ray Systems has selected Beam Global to supply tailored battery systems for its new autonomous underwater drones, aiming to extend mission duration without compromising stealth or manoeuvrability.
Sungrow has started construction on a 200 MW/400 MWh battery storage system for ENGIE, aimed at strengthening grid stability in a state heavily reliant on renewable energy.
Blue Current secures over $80mn in funding led by Amazon to industrialise its silicon solid-state batteries for large-scale mobility and stationary applications.
AGL has begun construction of a 500 MW battery storage system in Tomago, a project valued at AUD800mn ($530.8mn), in the Hunter region, with commissioning expected in 2027.
Real estate group JALCO Holdings diversifies its activities by investing in a 2 MW/8.1 MWh battery energy storage system developed by Taoke Energy in Narita, Chiba Prefecture.
BKW is conducting feasibility studies on four sites to assess the profitability and development conditions for large-scale battery storage installations in Switzerland.

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