May 22, 2013

Because commercial and industrial (C&I) customers are the largest energy users in a utility’s service territory, utilities have a strong incentive to meter them as accurately as possible.  The market for smart C&I electrical meters continues to expand as utilities seek to lower operating costs and provide granular consumption data to valuable C&I customers.  According to a new report from Navigant Research, worldwide shipments of smart meters for the C&I market will grow from 10 million annually in 2013 to 12.7 million annually by 2020.

“Smart meters provide a number of benefits for both utilities and their C&I customers,” says Neil Strother, senior research analyst with Navigant Research.  “Deploying smart C&I meters and the related infrastructure eliminates or greatly reduces the need for manual or walk-by/drive-by meter readings, and provides more precise measurement of consumption as it relates to billing.  At the same time, smart meters can help savvy C&I customers drive down operational costs, especially when linked with building energy management systems.”

In many countries, regulators have set ambitious targets for reducing energy consumption and improving energy efficiency.  This is particularly true in Europe, where European Union  regulators have set goals of a 20 percent reduction in greenhouse gas emissions, a 20 percent increase in energy produced from renewable resources, and a 20 percent improvement in energy efficiency by 2020.  Smart meter deployments in North America are well underway, and China is in the midst of a massive deployment of advanced meters, many of which will be installed at C&I facilities.  Penetration rates of smart meters in North America, Europe, and Asia Pacific will rise to approximately 70 percent by the end of this decade, according to the report.

The report, “Smart Meters for Commercial and Industrial Markets”, examines the global market opportunity for smart C&I electrical meters, analyzing the drivers and inhibitors that are shaping the market, along with major technology issues.  The report also provides market forecasts through 2020 for smart C&I electrical meter shipments and the associated revenue.  Case studies, key vendor profiles, and a discussion of broad C&I trends are also included.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Smart Meters for Commercial and Industrial Markets,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 21, 2013

Many new microgrid projects are still under the radar, and many local projects originate organically, without official designations or titles, making them very hard to track.  As a sector, however, microgrids are beginning to move into the mainstream, with a greater focus being placed on viable business models.  The result is a much more robust microgrid market than just a few years ago.  According to a new tracker report from Navigant Research, more than 480 microgrid projects are proposed, planned, under construction, or operating worldwide, representing nearly 3,800 megawatts (MW) of capacity.

“New vendors are continually entering this market and previously unpublicized projects keep coming to the fore, such as 27 projects planned or proposed in the state of Connecticut alone,” says Peter Asmus, principal research analyst with Navigant Research.  “The outlines of a growing and vibrant microgrid movement are emerging, and the findings in this report reaffirm some of the market optimism surrounding microgrids, clearly demonstrating the rapid growth in the sector.”

North America remains the world’s leading market for microgrids, with planned, proposed, and deployed capacity of 2,505 MW, representing an additional 417 MW since the fourth quarter 2012 version of the report.  This represents an additional 55 projects.  Of the total North American microgrid capacity, 1,459 MW is currently online and more than 1,122 MW is planned, under development, or proposed.

The report, “Microgrid Deployment Tracker 2Q13”, provides data on known microgrid projects in the proposal, planning, and deployed stages, including details on the various technologies employed in individual projects.  The report includes specific information on the capacity of the following generation assets: diesel, combined heat and power, solar photovoltaic, wind, and fuel cells.  It also details the rated capacity, duration, and types of energy storage for each project. The database is also segmented by world region.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Microgrid Deployment Tracker 2Q13,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 20, 2013

As rollouts of smart grid systems and smart meters have accelerated in the United States, utilities have struggled to effectively communicate the benefits of these technologies for consumers.  Convincing end-users to embrace this technology, by communicating the possibilities for greater energy management and conservation it enables, is critical to the long-term success of utility smart grid programs.  According to a recent consumer survey from Navigant Research, favorable attitudes toward the concept of the smart grid in general, and toward smart meters in particular, increased noticeably in 2012.

Forty-one percent of the consumers surveyed have a “favorable” or “very favorable” attitude toward smart grid and smart meters, according to the survey.  That is an increase of ten percentage points over the findings from Navigant Research’s 2011 survey.

“Less than ten percent of the respondents have an unfavorable opinion of smart grids and smart meters, which is an encouraging sign for utilities and policymakers,” says Neil Strother, senior research analyst with Navigant Research.  “However, utilities still have a long way to go in persuading a majority of their customers that they should approach these technologies with enthusiasm.”

Consumer attitudes toward the smart grid vary in direct proportion to educational attainment and income level, the survey found.  Nearly half of the respondents with graduate degrees have favorable opinions, while about 26 percent of those with only a high school degree showed positive responses.  Similarly, more than 45 percent of people earning at least $75,000 have positive opinions of smart grids and smart meters.

The report, “Smart Grid Consumer Survey”, details findings from a web-based survey of 1,001 consumers in the United States. The study assesses consumer preferences, opinions, and awareness toward smart grid applications.  More specifically, the report analyzes the dynamics of consumer demand, preferences, and attitudes toward several key smart grid product and service categories: smart grids and smart meters, home energy management, time-of-use pricing, renewable energy, prepaid electricity services, smart appliances, and demand response.  Navigant Research’s detailed examination of demand dynamics is segmented by various demographic and behavioral characteristics.  The survey was conducted in the fall of 2012 using a nationally representative and demographically balanced sample.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Smart Grid Consumer Survey,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 17, 2013

Improvements in lithium ion (Li-ion) battery technology are helping to accelerate the worldwide market for electric vehicles (EVs).  In the last few years, automakers have shifted from nickel-metal hydride (NiMH) batteries to Li-ion batteries.  This shift represents a major endorsement of Li-ion chemistry and its ability to perform consistently in an automotive environment.  According to a recent report from Navigant Research, total worldwide capacity of Li-ion batteries for transportation applications will increase more than ten-fold, from 4,400 megawatt-hours (MWh) in 2013 to nearly 49,000 MWh by 2020.

“Li-ion technology continues to improve, as increased energy densities translate into smaller and lighter battery packs with more power,” says David Alexander, senior research analyst with Navigant Research.  At the same time, leading battery cell manufacturers have built new factories utilizing the latest production techniques, including greater automation and faster throughput. This will lead to a reduction in the cost per kilowatt-hour (kWh) over the next few years, provided that volumes continue to increase.”

The market for Li-ion batteries will primarily be driven by the growth of battery electric vehicles (BEVs), as they utilize much larger battery packs than plug-in hybrid electric vehicles (PHEVs).  Today’s BEVs use battery packs ranging from 16 kWh to 85 kWh, compared to PHEVs that typically use packs ranging from 4 kWh to 16 kWh.  Additionally, many recently introduced hybrid vehicles, such as the Honda Civic Hybrid, use Li-ion batteries, and the percentage of hybrids using Li-ion technology is expected to grow steadily as automakers update their models.

The report, “Electric Vehicle Batteries”, provides a detailed examination of the growing market for Li-ion batteries, including profiles of all of the leading Li-ion battery manufacturers. Forecasts for revenues from Li-ion batteries, segmented by vehicle type, are included, along with vehicle roadmaps for hybrid, PHEV, and BEV sales by region. The report also includes a review of competing energy storage technologies, including ultracapacitors and nickel-metal hydride batteries.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Electric Vehicle Batteries,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 16, 2013

The vast majority of electric motorcycles and scooters sold worldwide are sold in China.  To date, little demand for these vehicles has existed outside Asia Pacific, with the exception of a few Western European countries such as Germany and Spain.  According to a recent report from Navigant Research, that will begin to change in the next several years: sales of e-motorcycles and e-scooters in North America will grow from a little more than 4,000 in 2012 to more than 36,000 in 2018, a nearly ten-fold expansion, the study concludes. 

“The market for e-motorcycles and e-scooters will grow as manufacturers provide more robust features, including longer range capability, better performance, and in the case of e-motorcycles, higher speeds,” says Dave Hurst, principal research analyst with Navigant Research.  “The North American market is still very much in its infancy, but the United States will see strong growth, with a compound annual growth rate of greater than 50 percent through 2018.”

In Asia Pacific, scooters and low-powered motorcycles are widely used as everyday transportation.  In North America, by contrast, motorcycles and scooters (including e-motorcycles and e-scooters) are more likely to be used for recreation than as a primary form of transportation.  The interest in higher-powered and touring motorcycles is higher in North America than other regions, and so e-motorcycles and e-scooters are often purchased as complements to other forms of transportation.

The report, “Electric Motorcycles and Scooters”, provides a comprehensive examination of the market drivers and barriers, technology issues, governmental incentives and regulations, and key drivers of growth in the e-motorcycles and e-scooters industry. The report includes e-motorcycle and e-scooter sales forecasts through 2018, as well as detailed profiles of key industry players. The report also provides forecasts for lithium ion and lead-acid battery technologies used in e-scooters and e-motorcycles.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Electric Motorcycles and Scooters,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 15, 2013

Demand response (DR) programs, which aim to achieve stability on the grid by ensuring that demand does not exceed supply of electric power, have been offered to many electric customers in the United States for decades.  In the last ten years, utilities and grid operators have adopted new technologies and practices to move demand resources to the next evolutionary phase, offering more advanced types of DR schemes.  According to a new tracker report from Navigant Research, at least 1,342 DR programs are now underway worldwide – 95 percent of them in North America.

“Demand response continues to exhibit strong growth in North America, but it is also showing increasing adoption in other regions, particularly in Europe and Asia Pacific,” says senior research analyst Marianne Hedin.  “A growing number of utilities and grid operators, in countries such as the United Kingdom, France, Australia, New Zealand, China, Hong Kong, South Africa, Japan, and South Korea, have actively taken steps to implement or expand their DR offerings.”

DR falls into four market models, each addressing different objectives: capacity, economic programs, ancillary services, and energy trading.  The capacity and economic market objectives account for the majority of the overall market, in terms of the number of programs.  The energy-trading and ancillary services markets are very small, with a combined total of only 25 programs, accounting for less than 1 percent of overall DR, according to the report.

The report, “Demand Response Tracker 2Q13”, provides data on the different types of DR programs that address each of the four market models, such as direct load control, interruptible load, critical peak pricing, real-time pricing, time-of-use, ancillary services, and demand bidding or day-ahead bidding schemes.  The report also covers programs focused on the major customer segments, including the commercial, industrial, agricultural, and residential sectors, and details the amount of load curtailment and the number of program participants, along with technology used and vendor partnerships whenever such information is available.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Demand Response Tracker 2Q13,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 14, 2013

Despite some well-publicized company failures, the solar and wind energy industries continued to expand in the United States during 2012, and consumers still tend to view the two renewable energy concepts favorably.  However, according to a recent survey by Navigant Research, consumer support for solar and wind energy, though still high, has fallen steadily over the last three years.

Favorable impressions of solar energy fell from 77 percent in 2011 to 69 percent in 2012, the survey found, while wind energy suffered a smaller drop, from 71 percent to 69 percent.

“Since 2009, there have been steady declines in favorability for some clean energy concepts, particularly the areas that have traditionally enjoyed strong consumer support such as solar energy, wind energy, hybrid vehicles, and electric cars,” says Clint Wheelock, managing director with Navigant Research.  “Overall, support for clean energy concepts in our tracking survey held fairly steady from 2011 to 2012, but the decline for solar energy in particular was significant.”

The survey results, part of Navigant Research’s annual Energy & Environment Consumer Survey, are summarized in a free white paper, which is available for download on Navigant Research’s website.

The average favorability responses for the 13 energy and environmental concepts have also declined over the past few years, from 50 percent in 2009 to 42 percent in 2012, although that figure remained essentially unchanged from 2011.  Cap and trade received the fewest favorable responses, with only 15 percent.  Favorable responses for clean coal, natural gas vehicles, nuclear power, biofuels, and six other concepts were unchanged year-over-year.  In 2012, only three of the 13 concepts received overall favorable responses: solar energy, wind energy, and hybrid vehicles.  Support for electric cars dropped below 50 percent for the first time since the survey was initiated in 2009.

The percentages of survey respondents stating that they had either a “very favorable” or “favorable” view for each of the 13 concepts in 2012 were as follows:

• Solar Energy:  69%
• Wind Energy:  66%
• Hybrid Vehicles:  61%
• Electric Cars:  49%
• Natural Gas Cars:  49%
• Clean Coal:  42%
• Nuclear Power:  41%
• Biofuels:  39%
• Smart Meters:  39%
• Smart Grid:  36%
• Carbon Offsets/Credits:  21%
• LEED Certification:  20%
• Cap and Trade:  15%

Navigant Research’s white paper, “Energy & Environment Consumer Survey”, presents all of the survey responses as a basis for comparing consumer views of 13 energy and environmental topics to one another.  In addition to favorable and unfavorable opinions, the number of respondents unfamiliar with a concept is also considered to compare the level of consumer awareness within each topic.  The study includes charts summarizing the survey results, along with commentary on notable trends and patterns for each area.  A full copy of the white paper is available for free download on the Navigant Research website.

The results in this white paper are based on a web-based survey of 1,001 consumers conducted by Navigant Research in the fall of 2012 using a structured online questionnaire.  The survey invitation was sent to a nationally representative and demographically balanced sample of consumers who were members of a large online panel.  Respondents were offered a chance to win prizes in exchange for their participation.  The margin of error for these survey results is +/- 3 percent with a 95 percent confidence interval.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Energy & Environment Consumer Survey,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 13, 2013

China is in the midst of its latest national development strategy, better known as the 12th Five-Year Guideline, which will continue through 2015. One of the Guideline’s primary goals is “strengthening the construction of [the] smart grid.”  With the support of the government-owned State Grid Corporation of China, as well as many provinces and cities, this effort is progressing rapidly.  According to a recent report from Navigant Research, annual revenue from smart grid deployments in China will reach $15.4 billion by 2020.

“The area of strongest smart grid growth in China will be transmission upgrades, anticipated to , reach more than $72 billion in revenue by 2020 on a cumulative basis,” says Bob Lockhart, senior research analyst with Navigant Research.  “Overall, smart grid development in China will generate $127 billion in cumulative revenue from 2012 to 2020.”

One primary objective of smart grid planners in China, according to the report, is to help address the country’s imbalanced energy supply.  Coal remains the primary source of power generation, and 76 percent of China’s coal resources are located in Shanxi, Inner Mongolia, Shaanxi, Xinjiang, and other northern and western regions. However, the country’s energy consumption needs are mainly concentrated in the more industrialized economies in the eastern and southern regions.

The report, “Smart Grid in China”, provides a comprehensive analysis of the relevant issues of China’s smart grid deployment program.  The report includes a detailed analysis of the market drivers, business models and technology issues for smart grid development in China.  Profiles are provided for more than 40 key industry players, classified by different industries, along with forecasts for smart grid revenue and smart meter shipments through 2020.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Smart Grid in China,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 10, 2013

Microgrids hold strong appeal for the United States Department of Defense (DOD).  Microgrids can reduce the amount of fossil fuels consumed to create electricity by networking generators as a system, and can help integrate renewable energy resources (such as wind and solar) for military installations.  Perhaps most importantly, microgrids enable military bases – both stationary and forward operating bases (FOBs) – to sustain operations, no matter what is happening on the larger utility grid or in the theater of operations.  According to a recent report from Navigant Research, annual revenue from microgrids for stationary military bases and FOBs will reach $377.8 million by 2018.

“The DOD’s interest in improving energy security through microgrid technology stems from its heavy reliance upon all forms of fossil fuels,” says Peter Asmus, principal research analyst with Navigant Research.  “In addition, the DOD has reexamined the existing electricity service delivery model in the United States, and has concluded that the best way to bolster its ability to secure power may well be through microgrid technology it can often own and control.”

The report identifies approximately two dozen military facilities in the United States that are currently engaged in smart microgrid implementations.  The Marines show the fastest initial capacity growth spurt, but the Army shows signs of longer-term increases in annual capacity.  This is because the Army has a larger number of stationary bases suitable for microgrid upgrades.

The report, “Military Microgrids”, examines the growth microgrids for three Department of Defense microgrid sectors: stationary bases, forward operating bases, and mobile systems. Along with forecasts through 2018 for each of the three primary sectors, the report also includes forecasts for stationary renewable integration and demand response microgrids, as well as solar photovoltaic systems deployed by the DOD. In addition, key industry players in systems integration, microgrid systems control and integration, and microgrid components are profiled.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Military Microgrids,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

May 9, 2013

The European transportation market is considerably different from that of other world regions.  European fuel prices have been significantly higher than in North America for many years, and therefore small, efficient gasoline- and diesel-engine cars have led European sales figures.  In the coming years, national energy policies and the increasing availability of electric vehicle charging infrastructure will help fuel strong growth in the market for plug-in electric vehicles (PEVs).  According to a recent report from Navigant Research, sales of PEVs will grow from fewer than 37,000 in 2012 to more than 669,000 in 2020.

Including hybrid electric vehicles, total electrified vehicle sales will reach 849,000 in 2020, the study concludes.

“Governments and private entities are taking steps to alleviate range anxiety, which has been a significant barrier to growth in this market,” says David Alexander, senior research analyst with Navigant Research.  “Charging infrastructure is being installed rapidly in many countries throughout Europe, and fast charging stations are now planned on many motorways to allow the wider use of PEVs.  There is even a project underway to allow a charging subscription in one country to be made effective all over Europe.”

However, battery charging technology remains an issue in Europe, with additional costs incurred by infrastructure operators who want to make sure that their equipment is compatible with all the vehicles on the road, regardless of which plug design is used.  Debate continues on the pros and cons of AC versus DC fast charging, according to the report, but is not expected to significantly delay the deployment of charging infrastructure.

The report, “Electric Vehicles in Europe”, examines key market trends and drivers for the purchase of light duty electric drive vehicles in Europe.  The study includes an analysis of business models and demand factors, technology and standards issues, and government policies within the region. Profiles of 23 key automakers in the sector are included, and detailed market forecasts for vehicle sales and registrations are provided for 21 European countries, segmented by powertrain, through 2020.  An Executive Summary of the report is available for free download on the Navigant Research website.

Contact: Richard Martin

+1.303.493.5483

richard.martin@navigant.com

* The information contained in this press release concerning the report, “Electric Vehicles in Europe,” is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.