/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED 1 MICROGRIDS & VPPS NOVEMBER 3, 2016 ASSOCIATION OF MUNICIPALITIES OF ONTARIO
/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED1
MICROGRIDS & VPPS
NOVEMBER 3, 2016
ASSOCIATION OF
MUNICIPALITIES OF ONTARIO
/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2
• Emerging infrastructure is far more integrated, dynamic, and complex
DISTRIBUTED GENERATION (DG)
Includes the generation of electricity from many small energy sources, including renewables; typically mass-produced, small, and site-specific
MICROGRIDS AND VIRTUAL POWER PLANTS
Applications or groupings of distributed energy resources (DER) that operate either connected or independent from a traditional centralized grid
ENERGY STORAGE
Devices or physical media that store energy to perform useful operation at a later time; balance the supply and demand of energy; improve power quality
DIGITALIZATION OF THE GRID:
• Smart inverters• Smart meters• Advanced sensors, controls,
and operation systems• Behind-the-meter (BTM)
technologies and solutions• Demand response (DR)
BUILDING ENERGY MANAGEMENT SYSTEMS
Digital control systems installed in buildings; enables energy efficiency, DR, and automated DR
ENERGY CLOUD IS MADE UP OF A DIVERSE SUITE OF
DISTRIBUTED ENERGY RESOURCES (DER) TECHNOLOGIES
(Source: Navigant Consulting)
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NANOGRIDS, MICROGRIDS AND VPPS:
EMERGING ENERNET LANDSCAPE
Enernet Links Up Nanogrids to Microgrids to VPPs
(Sources: EMERGE Alliance, Navigant Research)
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ROLE OF UTILITY AS MICROGRID GATEKEEPER
Mapping Utility Microgrid Strategies
(Source: Navigant Consulting)
(Source: DONG Energy)
Supportive
Active
Obstructive
Passive
Competing
Product/
Service
Impact
Policy
Product/
Service
Offering
Impact
Policy
Impede
Interconnect
Requests
Develop
Pilot
Engage
Interconnect
Requests
Wait and
See
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MICROGRIDS CAPACITY FORECAST: NORTH AMERICA
Microgrid Capacity by Segment, North America: 2015-2024
(Source: Navigant Research)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(MW
)
Remote Utility DistributionStationary Base Military Community ResilienceCommunity Commercial & IndustrialCampus/Institutional
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REMOTE MICROGRIDS IN THE LEAD IN CANADA*
Annual Microgrid Capacity by Segment,
Canada: 2015-2020
(Source: Navigant Research)
-
5
10
15
20
25
2015 2016 2017 2018 2019 2020
(MW
)
Grid-Tied Microgrids Remote Microgrids
*Proposed 100 MW in SSM, Ontario could
radically alter this assumption.
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PUBLIC VS. PRIVATE UTILITY
MICROGRID DEPLOYMENT TRENDS IN THE U.S.
Annual UDM Capacity & Implementation Revenue,
United States: 2015-2020
(Source: Navigant Research)
-
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
1,000.00
-
50
100
150
200
250
300
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
($ M
illi
on
s)
(MW
)
Public Power
IOU
Revenue
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CANADA RANKS IN TOP 10 COUNTRIES FOR MICROGRIDS
Total Microgrid Capacity Market Share by Country,
World Markets: 2Q 2016
(Source: Navigant Research)
United States41%
China30%
Russia6%
Canada6%
Australia5%
Indonesia4%
India2%
Denmark2%
France2%
Haiti2%
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NORTH AMERICA IS BEST OVERALL MICROGRID MARKET
Total Microgrid Power Capacity Market Share by
Region, World Markets: 2Q 2016
North America42%
Europe12%
Asia Pacific39%
Latin America4%
Middle East & Africa3%
Antarctica0%
(Source: Navigant Research)
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REMOTE MICROGRIDS CLEAR GLOBAL SEGMENT LEADER
Total Microgrid Power Capacity Market Share by
Segment, World Markets: 2Q 2016
(Source: Navigant Research)
Commercial and Industrial6%
Community11%
Utility Distribution15%
Institutional/Campus10%
Military5%
Remote53%
Direct Current0%
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THREE CLASSES OF VIRTUAL POWER PLANTS
(Source: Navigant Research)
Classes Description Strength Weakness
DR VPP• Traditional DR markets
• Software aggregation• Low cost, flexible
•Uneven markets
• Policy uncertainty
Supply-side
VPP
•Renewable generation
• Smart grid enabled
• Software aggregation
• Large, stable vendors•Niche markets (EU)
• Few projects
Mixed-asset
VPP
•Unites DG + DR
•Resource flexibility
• Enhanced by storage
• Large pool of solar
PV+ES nanogrid
assets
• IT innovation
•New business models
•Controls standards
• Immature AS
markets
Mixed-asset VPPs enhanced by battery energy storage assets are poised to become clear VPP market leader
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POWERHOUSE VPP BY POWERSTREAM & SUNVERGE
VPP Customer Acquisition Strategy
(Source: Powerstream)
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MARKET FORECAST:
TELEMETRY, DEVICE CONTROLS & SOFTWARE
(Source: Navigant Research, Virtual Power Plant Enabling Technologies Report, 3Q 2016)
Total Annual VPP Capacity & Implementation Spending by Region,
World Markets: 2016-2025
$-
$500
$1,000
$1,500
$2,000
$2,500
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
($ M
illio
ns)
(MW
)
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
Implementation Spending Total
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CONTACT US
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PETER ASMUS
Principal Research Analyst
+1.415.399.2137