Utility spending on Smart Grid as a Service (SGaaS) will grow from $1.7 billion in 2014 to $11.2 billion in 2023 – totaling $57.6 billion over that period, says a new research from Navigant Research.
SGaaS, according to the report has been a boon to small utilities that lack access to adequate financial and human resources to invest in smart grid solutions at the desire level. The market has strong growth potential, the report finds.
Richelle Elberg, senior research analyst with Navigant Research, said, “These flexible models allow utilities with financial constraints to spread project costs over several years, and can provide skilled IT professionals to utilities that may otherwise have difficulty attracting talent.”
SGaaS offerings are now available for a range of smart grid applications in several categories, according to the report, including home energy management (HEM), advanced metering infrastructure (AMI), distribution and substation automation (DA and SA) communications, asset management and condition monitoring, demand response (DR), and software solutions and analytics.
While initial adoption will come from smaller utilities, over time, even large utilities may find the business cases for certain functions to be compelling, Navigant Research said.
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