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    Home > Chemicals Industry > International Chemical > The solar home system and microgrid market will reach $64 billion by 2030

    The solar home system and microgrid market will reach $64 billion by 2030

    • Last Update: 2022-12-27
    • Source: Internet
    • Author: User
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    Following this week's Sustainable Development Goals meeting at United Nations Headquarters in New York, Bloomberg New Energy Finance released an analysis of the potential of off-grid solar PV and microgrids to meet the clean energy needs
    of 1 billion people currently unavailable.

    According to the report, there are five key factors that indicate that off-grid solar PV will play a key role in providing a
    universal energy supply.

    High grid connection costs

    Chief among these factors is the cost of
    grid expansion.
    The analysis states that the cost of establishing a connection can range from
    $266 to $2,100 per household.
    In high-income areas, this is not a problem because households can afford to pay the extra price of energy
    .
    In addition, energy prices in low-income areas will rise as grid operators amortize facilities
    at modest energy consumption.

    Bloomberg New Energy Finance calculates that the energy cost from a solar home system is about $1.
    5/kWh, or $0.
    29-0.
    77/kWh
    if it comes from a microgrid.
    The report goes on to say that the cost of electricity after the new connection is $1/kWh, so it is higher than the energy cost
    when the microgrid is deployed.

    Huge market size

    Analysts say the market size for solar home systems and microgrids will reach $64 billion
    by 2030.
    As a result, about 15 per cent of the population without electricity lives in urban areas
    .
    Utilities will focus on extending the grid to these areas
    .

    However, by mid-2020, distributed technologies will establish supply chains and cheaper components
    .
    In addition, at that time, there will be fewer
    areas where grid expansion and microgrids are economically viable.
    Based on these assumptions, the Bloomberg team believes that by 2030, 238 million households will have access to electricity, 72 million will use solar home systems, and 34 million will receive energy
    from microgrids.

    Cheaper than expected

    Bloomberg New Energy Finance analysts estimate that the general power supply market can reach $353 billion, almost half
    of what the IEA estimates on different occasions.
    However, Bloomberg stressed that the IEA believes that microgrids play a pivotal role
    in achieving universal energy supply.
    According to analysts, the IEA does estimate that the cost of the system will be higher than what
    the market has already experienced.

    The development of microgrids has been commercialized

    Large oil and energy companies like Shell have in-house teams to build microgrids and sell solar home systems
    at scale.
    By 2020, 6 of the 20 largest oil and energy companies reportedly committed to providing energy services
    to 52 million people.
    Analysts stress that these efforts stem not from philanthropy but from rigorous business development programs
    in emerging markets.

    The private sector has great potential

    The report argues that the transition from centralized generation assets to distributed off-grid systems will have a profound impact
    on how power systems are deployed, improved, and maintained.
    This change leaves a gap
    for startups to fill.
    According to Bloomberg analysis, the way energy is retailed and distributed can be completely reinvented and optimized
    .
    According to calculations, increasing the daytime load of agricultural activities, such as irrigation or cold storage, can reduce microgrid energy costs by about 18%.

    Following this week's Sustainable Development Goals meeting at United Nations Headquarters in New York, Bloomberg New Energy Finance released an analysis of the potential of off-grid solar PV and microgrids to meet the clean energy needs
    of 1 billion people currently unavailable.

    Microgrid

    According to the report, there are five key factors that indicate that off-grid solar PV will play a key role in providing a
    universal energy supply.

    High grid connection costs

    High grid connection costs

    Chief among these factors is the cost of
    grid expansion.
    The analysis states that the cost of establishing a connection can range from
    $266 to $2,100 per household.
    In high-income areas, this is not a problem because households can afford to pay the extra price of energy
    .
    In addition, energy prices in low-income areas will rise as grid operators amortize facilities
    at modest energy consumption.

    Bloomberg New Energy Finance calculates that the energy cost from a solar home system is about $1.
    5/kWh, or $0.
    29-0.
    77/kWh
    if it comes from a microgrid.
    The report goes on to say that the cost of electricity after the new connection is $1/kWh, so it is higher than the energy cost
    when the microgrid is deployed.

    Huge market size

    Huge market size

    Analysts say the market size for solar home systems and microgrids will reach $64 billion
    by 2030.
    As a result, about 15 per cent of the population without electricity lives in urban areas
    .
    Utilities will focus on extending the grid to these areas
    .

    However, by mid-2020, distributed technologies will establish supply chains and cheaper components
    .
    In addition, at that time, there will be fewer
    areas where grid expansion and microgrids are economically viable.
    Based on these assumptions, the Bloomberg team believes that by 2030, 238 million households will have access to electricity, 72 million will use solar home systems, and 34 million will receive energy
    from microgrids.

    Cheaper than expected

    Cheaper than expected

    Bloomberg New Energy Finance analysts estimate that the general power supply market can reach $353 billion, almost half
    of what the IEA estimates on different occasions.
    However, Bloomberg stressed that the IEA believes that microgrids play a pivotal role
    in achieving universal energy supply.
    According to analysts, the IEA does estimate that the cost of the system will be higher than what
    the market has already experienced.

    The development of microgrids has been commercialized

    The development of microgrids has been commercialized

    Large oil and energy companies like Shell have in-house teams to build microgrids and sell solar home systems
    at scale.
    By 2020, 6 of the 20 largest oil and energy companies reportedly committed to providing energy services
    to 52 million people.
    Analysts stress that these efforts stem not from philanthropy but from rigorous business development programs
    in emerging markets.

    The private sector has great potential

    The private sector has great potential

    The report argues that the transition from centralized generation assets to distributed off-grid systems will have a profound impact
    on how power systems are deployed, improved, and maintained.
    This change leaves a gap
    for startups to fill.
    According to Bloomberg analysis, the way energy is retailed and distributed can be completely reinvented and optimized
    .
    According to calculations, increasing the daytime load of agricultural activities, such as irrigation or cold storage, can reduce microgrid energy costs by about 18%.

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