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.

The Sino-Moroccan joint venture COBCO has begun manufacturing essential lithium-ion battery components at its Jorf Lasfar plant, targeting a final annual capacity of 70 GWh, enough to equip one million electric vehicles.
Trianel teams with BKW and Luxcara to build a 900 MW lithium-iron-phosphate storage park in Waltrop, the first phase of a complex that could reach 1.5 GW and stabilise the German grid.
Blue Whale Energy partners with UNIGRID to deploy behind-the-meter storage systems adapted to constrained commercial and industrial urban areas in Southeast Asia.
Northvolt, recently placed under judicial administration, has received an indicative offer from a foreign investor to acquire its Swedish assets, signaling a potential imminent restart of its battery production units.
The frame agreement aligns Jinko ESS’s utility-scale storage technology with Metlen’s development pipeline, unlocking more than 3GWh across Chile and Europe while reducing delivery risk for grid operators.
Buffalo-based Viridi has obtained the cETLus mark for its RPS150 system, meeting the UL 9540 standard only days after a public battery fire-containment demonstration.
Envision Energy signs a turnkey contract with Kallista Energy for a 120 MW / 240 MWh energy storage project in Saleux, Hauts-de-France, marking its entry into France’s stationary battery market.
The Dubai-based company obtains a USD72mn loan to add a 300MWh battery system to its 500MW solar plant in Kom Ombo, with commissioning expected in July 2025.
Asian developer Gurīn Energy selected Saft to supply a battery storage system exceeding 1 GWh in Fukushima, marking a new stage in Japan’s energy storage deployment.
Chinese lithium-ion battery manufacturer CBAK Energy confirmed a $11.6mn order for LFP cylindrical batteries to power the electric motorcycle fleet of a rapidly growing African group.
China’s 600MW/2400MWh project enters energisation phase following the installation of 240 battery containers, initiating initial maintenance of this ultra-high-voltage hybrid energy facility.
Wanhua Chemical has signed a strategic agreement with Serbian manufacturer ElevenEs to establish a localised supply chain for LFP battery materials, reinforcing their technical and industrial cooperation in the European market.
The partnership targets the development, construction and operation of over 500 MW of battery energy storage systems in France, with 200 MW nearing the construction phase.
Envision Energy and SUN Terra join forces to build a full energy storage value chain in Southeast Asia, India and Australia, including local manufacturing and technology licensing.
EDF Renouvelables has started building its first large-scale energy storage battery in Poland, a 50 MW project set to be operational by late 2025 in the Opole region.
Enfinity Global has sold a 49% minority stake in two energy storage projects in the US and Italy to Daiwa Energy & Infrastructure, a major player in alternative investments.
Sigenergy deployed a 20 MWh modular energy storage system on a solar power plant in Bulgaria, demonstrating a targeted industrial investment in high-efficiency storage technologies.
Chinese lithium-ion battery maker CBAK Energy received a new $3mn order from India’s Livguard, bringing the total value of their agreements to $7.9mn.
US-based UNIGRID has received public funding to launch a sodium-ion battery production line in San Diego, aiming for industrial-scale volumes at the pilot phase.
The Norwegian group has been named preferred bidder for a 492 MWh storage project under South Africa’s public BESIPPPP programme.