ID: MRFR/E&P/1645-HCR | October 2022 | Region: Global | 188 pages
Impact of COVID-19 on the Global Microgrid Market
COVID-19 has affected the global economy as the operations of various sectors have come to a standstill. In the power sector, companies are dealing with several challenges due to a decline in resources and workforce. Due to the pandemic and containment measures, the target for installing distributed energy resources has almost come to a halt. However, several corrective measures are being taken to stimulate microgrid growth post-COVID-19. For instance, associations such as Solar Energy Industries Association (SEIA), Advanced Energy Economy (AEE), Institute for Local Self-Reliance (ILSR), and Alliance for Rural Electrification (ARE) are taking measures for getting microgrid projects back on track. The proposals for clean energy and growing microgrids by these associations came at a time when almost 100,000 advanced energy workers in the US are out of work. However, the proposals to strengthen distributed energy are emerging as the US government is formulating a stimulus package in response to the COVID-19-induced unemployment. Moreover, this package is expected to lead to some relief, especially for the DER and microgrid markets. The package is a way not only to ensure the survival of the power industry but also to boost the overall economy. The investment in solar, microgrids and other DERs can lift the economy out of its downturn by saving homeowners and business owners and creating jobs while reducing carbon emissions.
FIGURE: MICROGRID GENERATION CAPACITY IN THE US IN 2015, BY REGION (MW)
Additionally, COVID-19 mitigation measures for microgrids are suitable for grid edge technologies supporting improved diagnostics and remote operations, catalyzing further investments. Moreover, long utility sales cycle times are expected to mitigate the negative impact of the pandemic on investment plans. For instance, in May 2020, lithium-ion energy storage specialists SimpliPhi Power partnered with the non-profit, Footprint Project, to deliver a clean energy microgrid field hospital for the Matamoros migrant camp in Mexico.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary sources