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.

TagEnergy launches a 150 MW storage project at the Golden Plains wind farm site, strengthening its investment strategy in Australia's energy infrastructure.
CATL, Sun Village and Marubeni Power Retail have signed an agreement to develop 2.4GWh of grid-scale storage capacity in Japan, without a defined schedule, leveraging investment, construction and commercial management synergies.
Northland Power has acquired two energy storage projects in Poland from Greenvolt Power Group, consolidating a strategic partnership in a transitioning market.
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Group1 and Michigan Potash & Salt Company have signed an agreement to create a domestic potassium-based battery supply chain, relying on local mining and production free from critical metals.
A battery storage project developed in Shiga Prefecture marks a new step for the Japanese industry, with the official commissioning of a 4MWh facility aimed at the primary balancing market.
Nine battery storage projects totalling 18MW will be built by au Renewable Energy across the Chubu, Kansai and Kyushu regions, with commissioning scheduled through March 2027.
ACEnergy’s Central BESS project has been approved with a $3.6mn benefit-sharing plan for local and Indigenous communities.
Operator Fullmark Energy has finalised a $46mn investment tax credit transfer linked to its 125MW Redwood storage portfolio in Southern California, strengthening its ability to pursue further growth in the sector.
Eos Energy confirmed the expiry of its public warrants following the exercise of 6.7 million units, generating $76.9mn to finance its industrial projects in the United States.
Trina Storage and Pacific Green Energy Group have signed a memorandum of understanding for the supply of 5GWh of battery systems by 2028, reinforcing their activities in the Australian and international energy storage market.
HyperStrong commits to purchase at least 200 GWh of battery cells from CATL by 2028, as part of a strategic partnership aimed at structuring a global energy storage ecosystem.
A report urges European states to rapidly deploy long-duration energy storage technologies, deemed essential to avoid building obsolete gas assets and reduce grid costs by 2040.
LibertyStream has signed a memorandum of understanding with Packet Digital to secure a local supply of lithium carbonate for industrial and military battery production, backed by approximately $2.7mn in funding.
US-based Rondo Energy and SCG Cleanergy have completed the installation of a 33 MWh heat battery at a cement plant in Thailand, the first of its kind in Southeast Asia, delivering steam to power a turbine for industrial electricity generation.
Entech and Primeo Energie create Primtech Batteries to develop battery electricity storage projects in France and the European Union, targeting 100 MW installed by 2029.
Three New York public high schools are introducing a new energy storage module this year, through a partnership between NineDot Energy and Solar One aimed at preparing students for careers in distributed energy.
Nuvve Holding Corp. plans three 2MW battery installations in Eastern Zealand to strengthen the Danish grid and optimise revenues through its proprietary software platform.
HS Hyosung partners with Umicore to produce silicon anodes, a key material for next-generation batteries, through a €120 mn investment to strengthen its position in energy storage.
LG Energy Solution partners with South 8 Technologies to develop lithium-ion batteries capable of operating at -60 °C, strengthening its position in the space sector alongside KULR Technology Group and NASA.

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