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[August 14, 2012]

Worldwide Capacity of Utility Distribution Microgrids to Nearly Triple by 2018, Pike Research Forecasts

To date, electric utilities' approaches to integrating distributed energy resources using microgrids have varied widely - from viewing utility distribution microgrids as an existential threat to the companies' traditional business models to active utilization of microgrid projects in order to integrate renewable energy, improve grid reliability, and reduce peak load. According to a new report from Pike Research, a part of Navigant's Energy Practice, microgrid adoption by utilities will increase steadily over the next several years, as awareness of, and confidence in, the microgrid model's capabilities and benefits grow. The total worldwide capacity of utility distribution microgrids - including investor-owned utility, public power grid-tied, and remote microgrids - will nearly triple in the next six years, the report finds, reaching 1.2 gigawatts in 2018. Annual vendor revenue from utility distribution microgrids will reach almost $3.3 billion in 2018.

"A handful of utility innovators are moving forward with microgrid projects despite significant institutional bias and regulatory obstacles," says senior research analyst Peter Asmus. "These early adopters are heralding a future in which microgrids will become a more prevalent part of the distribution utility landscape."

For a variety of reasons, North America (and especially the United States) represents the best overall market for all microgrid segments in terms of aggregate capacity, including utility microgrids. Due in large part to the broad expected growth of renewable distributed energy generation and the interwoven relationships between municipal governments, state-run grids, and government-owned utilities, however, the Asia Pacific region will likely lead the world in total utility distribution microgrid vendor revenue over the long term, the report concludes. While Europe's deregulated utility markets offer a more hospitable regulatory environment for microgrids than those in other regions, the expansion of utility distribution microgrids will be slower in Europe than in other regions.

The report, "Utility Distribution Microgrids", analyzes the global market opportunity for utility distribution microgrids, including applications for investor-owned utilities, public power entities, and remote utility networks. The study includes a comprehensive assessment of the market drivers and challenges, technology issues, and economics of operating microgrids in grid-tied utility environments around the world. Key industry players are profiled in depth, and market forecasts for capacity and revenue are provided by utility type and region through 2018. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research (News - Alert)

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, "Utility Distribution Microgrids," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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