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.

Share:

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.

Energy Vault secures an exclusive $300 mn commitment to support the creation of Asset Vault, a subsidiary dedicated to building and operating 1.5 GW of energy storage projects across several continents.
Energy Vault confirms the acquisition of the Stoney Creek storage project, marking its first major operation in the Australian market, following approval from local authorities on foreign investments.
GoldenPeaks Capital strengthens its position on the Polish energy storage market with the acquisition of two battery systems, totalling 54 MW, secured by seventeen-year capacity contracts.
SolarMax Technology has signed a key contract to deliver a 430 MWh battery energy storage system in Texas, strengthening its presence in the large-scale US energy solutions market.
Shanghai Sermatec Energy Technology Co., Ltd. announces an agreement to supply more than 430 MWh of energy storage in Bulgaria, marking a new step in the expansion of Chinese solutions in the European market.
Pulse Clean Energy raises GBP220mn ($292.3mn) from six international banks to fund six new battery sites, supporting the UK strategy to expand energy storage and transition to a more resilient network.
According to Ember, the profitability of battery storage on Indian wholesale markets is rising sharply, driven by the rapid decline in costs and high volatility in electricity prices.
Pacific Green has signed a commitment agreement with ZEN Energy for the management of 1.5GWh of battery storage across three major sites in Australia, strengthening its portfolio and accelerating the market launch of its projects.
More than 100,000 residential batteries coordinated by Sunrun delivered 360 megawatts to the California electricity grid, setting a new record for distributed power during an exercise supervised by local authorities.
Princeton NuEnergy receives a SuperBoost grant to industrialise its direct lithium-ion battery recycling process, strengthening the resilience of the U.S. supply chain and national security objectives.
EnBW plans to install in Philippsburg one of Germany’s most powerful battery storage systems, with a capacity of 800 MWh, supporting the transition of the former nuclear site into a key player in grid flexibility.
Eos Energy Enterprises reaches a milestone with record quarterly revenue and strengthens its position in energy storage, supported by a major fundraising and the expansion of its commercial pipeline.
AGL Energy Limited invests 800 mn USD in a 500 MW battery in New South Wales, aiming for commissioning in 2027 and strengthening its position in the flexible assets market.
AGL launches a community battery project totalling 11.5 MW, aiming to reduce electricity costs for more than 10,000 low-income households in South Australia through a public-private partnership and public financial support.
Nearly 1 GWh of storage capacity has just been added to the Texas grid by esVolta, meeting critical needs in Dallas and western parts of the state for the 2025 summer peak.
Arevon has launched operations at the Peregrine Energy Storage project in San Diego, with a capacity of 200 MW for 400 MWh and a $300mn investment to strengthen California’s energy security during periods of peak demand.
H2G Green Limited and Singapore’s Agency for Science, Technology and Research launch a partnership to industrialise a process transforming biochar into hard carbon, essential for sodium-ion and lithium-ion battery production. —
Avangrid has completed a strategic pilot with Tyba to optimise battery site selection, simulating operations at over 2,400 locations to refine profitability and the management of energy storage on US power markets.
The addition of 5 GW of battery capacity and commissioning of the Kimal-Lo Aguirre line are expected to significantly reduce congestion and stabilise Chile’s power grid by 2032.
B2U Storage Solutions has started construction on a grid storage facility in Bexar County, deploying 500 repurposed electric vehicle batteries for a 24MWh project, marking a first in Texas and signalling a significant step in the US market.