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In this study, we target the micro-grid market, which is part of of the small scale decentralised energy generation segment of the decentralised (distributed) energy generation market. Although micro-grids have distinctive features, they can be easily confused with other small scale solutions. To avoid confusions and set migro-grids into the context of power generation industry, the following definitions are provided. Total Electricity Generation
Generation of electrical power from other sources of primary energy. Includes centralised and decentralised patterns of power production. Production of electricity (and sometimes electricity combined with thermal power) from different sources located closer to areas of consumption. Section of decentralised electricity generation, which consists of on-site generation units with generating capacity of less than 1 MW A localised GROUPING of small-scale generating units, energy storage, and loads that normally operates connected to a traditional centralised grid BUT is capable of self-islanding and working in autonomous regime.
Micro-Grids
Source: BSRIA
Source: BSRIA
N.B. In this study, the micro-grids market size is defined both in volume and value terms. Volume terms include as follows: Micro-grid capacity the installed capacity of distributed generation units integrated into micro-grids as of the end of indicated period. Micro-grid generation cumulative generation of electricity ONLY (no heat) by distributed generation units integrated into micro-grids as of the end of indicated period.
According to BSRIA estimates, in 2012 the world installed capacity of micro-grid networks reached 3.5 GW, an impressive 75% growth compared to the previous year. As a result, within a single year the share of micro-grid capacity increased from 4% to 5% of The Worlds total small scale decentralised capacity (>1MW according to BSRIAs methodology). At the same time, micro-grid annual electricity generation reached almost 20 TWh, almost 6% of the worlds total small scale decentralised electricity generation. 3 3
As the analysis shows, micro-grids are still a negligibly small niche in the electricity generation market, accounting for 0.1% of total electricity generation. Even within the segment of small-scale decentralised generation it looks rather marginal, standing at only 5% of small scale decentralised capacity. Despite showing impressive growth rates, the micro-grid market is not set to join the main stream of power industry in the medium term. Within the long-term, however, one could expect the break-through from this niche position. Micro-grid concept fits perfectly within both energy supply security and decentralisation of power generation, for which reason micro-grids seem to be crucially reconceptualised in the long term. 4
Source: BSRIA