Microgrids - The Opportunity Everyone is Talking About

The North American microgrid market space is expected to grow from $2B in implementation revenue to over $13B over the next decade, for a compound annual growth rate of 22.5% according to Navigant Research.   Projections for global microgrid revenue reach over $30B in that time frame.   As enticing as these revenue and growth estimates are, major market entrants are also motivated by a strategic need to be in alignment with the growing forces of this new power transmission operating paradigm:

• Major capital infrastructure investments for the power grid will be measured against new distributed generation options, with preference for the increased disturbance tolerance of self-supporting sub-grids 
• Microgrids and power storage technologies have the potential to affect electrical power transaction costs and electricity market behaviors broadly, at the wholesale and retail levels
• Security and disaster resilience efforts will seek proven electrical infrastructure solutions for areas of critical economic importance
• Evolution of the underpinning microgrid technologies and the active competitive space will maintain downward pressure on component costs, enabling deeper penetration into established grids and viability in emerging market grids

The coinciding cost breakthroughs of storage, active power converter technology and renewable power sources have opened a green field for a new microgrid industry, in much the same manner as home computing power and digital telecommunications opened a new market space for Internet interfaces two decades ago.  Market forces will once again decide who will set the standards in this new market frontier under which all participants will compete.  Establishing market superiority early is therefore key, and this requires a strong business plan.  By leveraging your existing competitive advantages into the most lucrative and accessible market segments you can minimize your cost of entry, optimize your growth rate and maximize the returns on your investment.

Tim’s “Intrapreneurial” Approach

Moving an established organization into a new market space entrains much of the same risk and reward profile as a new startup venture.  “Intrapreneurship” approaches such opportunities with the agility and adaptability of a startup while leveraging the experience and capabilities of a large corporation.  By utilizing the labor flexibility of a consultant with technical and business acumen to guide the construction of this venture, you can minimize the downside risk entrained in permanent staffing while creating the framework for rapid growth on the upside.

A Phased Business Unit Growth Approach

The construction of a long-term earnings generator requires a foundation built upon educated decisions and strong partnerships, capable of evolving to fit new industry developments as it grows.  You can choose to start at the phase of development that best suits your present microgrid effort maturity, in an inclusive process grown from your business’s strongest capabilities.  These phases are:

1. Market and Capabilities Identification
2. Business Model Canvas
3. Project Engagement
4. Project Execution
5. Analytics