Microgrids: How Business Model Innovation Will Support New Development Opportunities

December 22, 2013 | State of the Market Report

A microgrid does not encompass a single set of technologies, and given the diversity, there is not a single definition of what constitutes a microgrid. For the purpose of this report, Lux Research defines a microgrid as power services or “island” from an external power system or “macrogrid” while maintaining on-site power. In this report, we evaluate three business models and their financial viability across a number of sectors and generation souces. We find that microgrid-as-a-service (MaaS) offerings are applicable to both on- and off-grid systems, and can enable utilities to cost-effectively and strategically retain customers while growing their microgrid services. While on-grid systems will be best served by a third-party or utility-implemented MaaS, off-grid systems will be best served by Greenfield MaaS and pay-as-you-go (PAYG) business models. In our profile of microgrids, we’ve found that the complex planning required to deploy microgrids is enabling microgrid products and new business models to emerge. Based on our modeling and analysis, we also describe opportunities for utilities, impact-investors, and technology developers to make a play in microgrids.

Coverage Areas

  • Digital Transformation
  • Energy Storage
  • Future Grid
  • Industrial Internet of Things
  • Next Generation Power
  • Owning the Energy Transition

Table of Contents

  • Executive Summary
  • Landscape
  • Analysis
  • Outlook

About Lux Research

Lux Research is a leading provider of tech-enabled research and advisory solutions, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux clients are empowered to make more informed decisions today to ensure future success.

Already a Lux Client?

Sign In

Interested in Learning More?

Contact us to learn the benefits of becoming a Lux member.

Or call us now

For North America (Boston Headquarters)
+1 (617) 502-5300

For EMEA (Amsterdam)
+31 20 280 7900

For APAC (Singapore)
+65 6592-6978