Microgrids Could Create a $350 Billion Opportunity Over the Next 20 Years

May 19, 2020 - By: Baystreet Staff

North America is now the top microgrid market in the world. All thanks to the installation of commercial and industrial microgrids, according to Guidehouse Insights, as highlighted by Microgrid Knowledge. The report found that 6,610 projects around the world, with North America representing 36.3% of the capacity.

“North America’s push for the top spot as the global capacity leader is due to a large quantity of fossil-based commercial and industrial (C&I) system additions being deployed as resiliency solutions,” added Guidehouse Insights. “This contrasts with last year’s findings, which showed a large amount of rural electrification projects in Asia Pacific and the Middle East & Africa.”

In addition, a report from Global Industry Analytics says the global microgrid market could grow to $2.1 billion by 2025, as highlighted by Energy Digital. “The US is expected to maintain the highest sectoral growth in the world (17.4%), with some other sources predicting that, by 2040, clean-energy microgrids could be worth a staggering $350bn.”

And, according to Hitachi, with regards to microgrids, “Against a background of successive natural disasters and terror threats around the world, a steady supply of electricity including measures against power outages is a common social issue for all countries, from the viewpoint of the safety and security of their residents.” That’s creating opportunity for companies such as CleanSpark, Inc. (NASDAQ:CLSK), Ballard Power Systems Inc. (NASDAQ:BLDP) (TSX:BLDP), Honeywell International (NYSE:HON), General Electric Company (NYSE:GE), and Eaton Corporation PLC (NYSE:ETN).

CleanSpark, Inc. (NASDAQ:CLSK) BREAKING NEWS: CleanSpark, Inc., a diversified software and services company, is pleased to announce that the United States Patent and Trademark Office (USPTO) has approved for issuance an additional patent protecting the company’s technology. The USPTO notification indicates that the application will issue as U.S. Patent No. 10,658,839 on May 19, 2020.

“Today’s patent specifically protects our proprietary system and method for distributing energy between microgrids. It particularly addresses the challenge of determining when it is appropriate for one microgrid to share power with another microgrid. In the patented system and method, a microgrid forecasts its own future power needs, the microgrid then uses this forecast to determine if and when to share power with another microgrid.” stated Zachary Bradford, CleanSpark’s President and CEO.

“This patent further protects the technology and methods our platforms use to intelligently make decisions related to power sharing based on factors ranging from energy demand, utility rates, time-of-use, weather forecasting and others. The value of integrating multiple microgrids in concert to create an ecosystem of resources working together to achieve increased resiliency, efficiency for cost-avoidance, revenue generation or reduction in greenhouse gas emissions is significant. Our system flexibility allows these priorities to be set by the system owner,” concluded Bradford.

Other related developments from around the markets include:

Ballard Power Systems Inc. (NASDAQ:BLDP)(TSX:BLDP) announced consolidated financial results for the first quarter ended March 31, 2020. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS). “Our top priority, always, is the health and safety of our people, customers and partners,” said Randy MacEwen, President and CEO. “We have taken important precautions to mitigate the impact of the COVID-19 pandemic on our people and our business. Notwithstanding this extraordinary backdrop, we delivered record Q1 revenue of $24.0 million, gross margin of 22% and ending cash reserves of $181.6 million. We further fortified our balance sheet, with the execution of an At-The-Market Equity Program.”

Honeywell International (NYSE:HON) announced strong earnings growth for the first quarter of 2020 despite significant impacts from the COVID-19 pandemic. The company reported first-quarter earnings per share of $2.21, above guidance, operating profit growth of 3%, segment profit growth of 2%, and segment margin expansion of 140 basis points, all of which were at or above first-quarter guidance, with sales down 5%, or 4% organically. "Honeywell delivered on our original earnings commitment for the first quarter, with EPS growth of 15% despite the substantial challenges we faced due to the COVID-19 pandemic. We remain focused on the strong operational excellence principles that underlie everything we do, and that discipline enabled us to achieve earnings growth in a challenging first quarter," said Darius Adamczyk, chairman and chief executive officer of Honeywell. "As the COVID-19 pandemic rapidly escalated and the global economy deteriorated, we faced headwinds across our businesses, including rapid changes in our supply chain, constraints at customer sites, and significant impacts on the commercial aerospace and oil and gas end markets. These challenges drove an organic sales decline in the quarter. However, we acted quickly to mitigate the impacts and we continued to serve our customers, including those involved in the COVID-19 response efforts, while ensuring the safety of our employees.”

General Electric Company (NYSE:GE) has successfully energized the Dynamic Reactive Compensator (DRC) project for National Grid in the UK. This project represents the largest utility-grade Static Synchronous Compensator (STATCOM) scheme in Europe, delivering 975 Mvar power range. It is deployed and coordinated over three separate substations along the transmission network in southeast UK. “Working with GE, National Grid has now implemented the largest voltage compensation scheme in Europe, an accomplishment that we are immensely proud of. This project represents another technology implementation in a long line of successes that we have had with GE,” said National Grid’s Electricity Transmission, Head of Customer Solutions Hedd Roberts.

Eaton Corporation PLC (NYSE:ETN) announced that earnings per share were $1.07 for the first quarter of 2020. Excluding charges of $0.02 per share related to acquisitions and divestitures, adjusted earnings per share were $1.09. Adjusted earnings per share were reduced by $0.14 due to the impact of the COVID-19 pandemic. Sales in the first quarter of 2020 were $4.8 billion, down 10 percent from the first quarter of 2019. Organic sales were down 7 percent, including a reduction of 4 percent from the impact of the COVID-19 pandemic. Acquisitions added 2 percent to sales, which was offset by 3½ percent from divestitures. Negative currency translation reduced sales by 1½ percent. Craig Arnold, Eaton chairman and chief executive officer, said, “At our annual investor day on March 2, we indicated that our first quarter would be impacted by the COVID-19 pandemic. At that time, the pandemic was largely limited to China with little direct impact on other parts of the world. As we all know, things have changed dramatically since that time and the pandemic is now affecting all countries. At the start of the year, we expected organic sales in the first quarter to be down 3 percent. The COVID-19 pandemic reduced our sales by an additional 4 percent, resulting in a 7 percent reduction in organic sales for the quarter.”

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. CleanSpark, Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of CleanSpark, Inc. Please click here for full disclaimer.

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