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.

Japanese company AI.net has signed a supply deal with China’s CATL for 1GWh of lithium-ion batteries, marking its entry into large-scale energy storage with a target of 500MW by March 2028.
Canadian group Energy Plug Technologies continues its expansion in the US market with the delivery of a new energy storage system to an industrial client based in the southern region.
Despite the emergence of new storage technologies, lithium-ion batteries retain a dominant position thanks to industrial leadership, improved performance and a high geographic concentration of production capacity.
Envision Energy launches the Gen 8 platform, a modular storage range from 6 to 12 MWh, aiming to optimise energy density, logistical flexibility, and profitability for large-scale projects.
BAK Battery presented in Chongqing its semi-solid batteries ready for industrialisation, with cells reaching up to 390Wh/kg, confirming its strategy focused on scenario-specific adaptation and mass production.
Daiwa Energy & Infrastructure has launched a 38MW grid-scale battery system in Chitose, aiming for commissioning in 2027, as part of its deployment of high-voltage storage assets across Japan.
Menlo Digital has started construction on its MD-DC1 data centre in Herndon, marking a key step in its national development programme exceeding 1.8 GW.
Finnish energy company Vantaan Energia has selected Elisa Industriq’s Gridle service to operate its new energy storage system in Rekola, supporting national grid flexibility.
US-based Eos Energy will supply up to 750 MWh of zinc-based storage systems to MN8 Energy, targeting high-demand projects such as data centres and industrial facilities.
Eos Energy and Talen Energy partner to develop multiple energy storage projects in Pennsylvania to meet rising electricity demand driven by AI and cloud computing growth.
NEO Battery Materials will supply high energy density batteries to a South Korean industrial robotics company under a $2.5M CAD order and joint development agreement over two years.
US-based battery storage developer Bimergen Energy has appointed Cole Johnson and Robert Brilon as co-CEOs to execute a large-scale industrial plan backed by $250 mn in recent funding.
Trina Storage has introduced its new Elementa 3 energy storage system, engineered for the Gulf’s extreme conditions and aimed at boosting energy density while lowering operating costs.
Japanese company Sun Village has connected its first energy storage facility to the grid and formalised a strategic partnership with Marubeni Power Retail to operate the asset on electricity markets.
Lightshift Energy has secured $75mn in funding from KeyBanc to support six operational projects and launch ten more, in response to rising demand for electric storage on the US East Coast.
Austrian battery optimisation specialist enspired enters Japan in partnership with Banpu NEXT, backed by a Series B extension to over €40mn.
Ameresco has completed a 50 MW battery storage system to support Nucor’s expansion in Arizona, marking one of the largest behind-the-meter industrial projects in the United States.
Rondo Energy has launched commercial operations of the world’s largest industrial heat battery, delivering 24-hour steam from off-grid solar power.
SUNOTEC expands in the Bulgarian market with seven projects combining battery and solar, totalling 763 MWh of storage and 115 MWp of photovoltaic capacity.
Danish fund Copenhagen Infrastructure IV transfers half of its stake in the UK-based Coalburn 2 project to AIP Management, strengthening AIP's energy storage portfolio in the United Kingdom.

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