Electric grid is an interconnected network that delivers electricity from producers to consumers. Generating stations produce electric power. With the help of electrical substations, electrical voltages are stepped up for transmission and subsequently stepped down for distribution. Limited one-way interaction is used by the current grid setup.
Aging grid infrastructure leads to ineffective demand side management, thereby resulting in electricity deficit. Smart grid technology has been introduced to overcome this challenge. Smart grid is an electricity grid that is used to deliver electricity through a two-way technology to enable communication between consumers and the utility. Smart grid manages the demand for electricity in a reliable, efficient, and sustainable manner. Smart grid involves a network of sub-stations, transformers, and electric lines that help in delivering electricity from power plant to business offices and homes. Akin to the Internet, smart grid involves the use of computers, automation, controls, and new technologies that work in conjunction with each other.
According to the International Energy Outlook 2016 report, total world delivered commercial sector energy consumption is expected to grow by an average of 1.6% per year from 2012 to 2040 and is the fastest growing energy demand sector
Building-to-grid (B2G) technology is an integration that refers to the interface of the commercial and industrial building sector with the electric grid. This integration helps maintain electricity system reliability by enabling buildings to contribute to changes in electricity supply and/or demand.
Key Drivers and Restraints of Building-to-Grid Technology Market
According to the International Energy Agency, total energy consumption for commercial sector stood at 4, 12,627 Ktoe in 2018 and is anticipated to rise during the forecast period. Secondary power plants are used for electricity generation during peak times. These use fossil fuels as an energy source. The outlook for the buildings-to-grid technology appears bright, as it helps achieve even distribution of electricity.
The average number of units consumed per sq. feet in commercial building is high, as building-to-grid technology is primarily considered for commercial as well as industrial applications. Continuous rise in unit consumption is expected to boost the building-to-grid technology market.
Building-to-grid technology consists of capturing real time data. Proper technical infrastructure is required for this purpose. The cost incurred in developing such infrastructure and designing of such robust mechanism is high. This is anticipated to restrain the market in the near future.
COVID-19 Impact Analysis on Power Demand
Governments of several countries across the globe have imposed stringent lockdowns to limit the spread of the coronavirus. Movement of individuals and economic activities, related to goods and services, have come to a halt because of lockdowns. This has adversely affected the demand for electricity for commercial purposes. In turn, this has hampered the global building-to-grid technology market.
Building-to-Grid Technology Market Segmentation
The global building-to-grid technology market can be segmented into sector and service
In terms of sector, the global building-to-grid technology market can be bifurcated into commercial and industrial. The commercial sector is developing rapidly vis-à-vis the industrial sector. Therefore, demand for building-to-grid technology in the commercial sector is anticipated to rise at a faster pace during the forecast period.
In terms of service, the global building-to-grid technology market can be classified into automation, energy storage, and others. The automation service segment can be divided into software and hardware.
In terms of region, the global building-to-grid technology market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
The building-to-grid technology market in the U.S. is anticipated to expand at a faster pace. Utilities in the U.S. invested approximately US$ 144 Bn in electricity generation, transmission, and distribution infrastructure in 2016. Investment in annual smart grid setup in the U.S. rose from US$ 3.4 Bn in 2014 to US$ 4.8 Bn in 2016. These investments are projected to rise to US$ 13.8 Bn in 2024.
According to the International Energy Agency, demand for electricity in India is projected to reach 1900 terawatt-hours during 2021 to 2022. Carbon dioxide emission from coal combustion is anticipated to reach 3.3 gigatons (Gt) in 2030. The usage of the building-to-grid technology can help buildings curb unnecessary usage of electricity. This can lead to achievement of even distribution of electricity without power outage, thus driving the building-to-grid technology market during the forecast period.
Key Players Operating in Global Market
Global Building-to-Grid Technology Market: Research Scope
Global Building-to-Grid Technology Market, by Sector
Global Building-to-Grid Technology Market, by Service
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aartimule Joined: April 16th, 2020 Articles Posted: 1,188