How Can Microgrids and Utilities Become Best Buds?

Navigant Research featured in Microgrid Media

Microgrids and utilities have historically had a contentious relationship — utilities have felt threatened by microgrids encroaching on their service territory.

Navigant Research’s Peter Asmus describes a shift in changes in the utility mindset, and how utilities are using utility distribution microgrids to their advantage, “… the concept of a utility distribution microgrid — a term first used by Navigant Research in 2012 — turns this value proposition on its head. As utilities seek new business models to better manage both customer-and utility owned DER, the UDM platform offers a path forward with win-win scenarios for each side.”

Asmus also describes the market for UDMs, “the market for UDMs in the United States is poised for major growth. By 2024, annual investment in UDMs deployed by both investor-owned utilities (IOUs) and publicly owned utilities will reach nearly $1 billion.”

Finally, Asmus contends, “The bottom line is that utilities should continue to experiment with microgrid designs, business models, and creative partnerships with third-party providers…since microgrids are so flexible and accommodating, a growing number of utilities will find value in exploring the emerging UDM landscape.”

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