In our recently released report titled, “Renewable Energy and the Smart Grid,” jointly developed by Zpryme and Intelligent Communication Partners (ICP), we explore the challenges and opportunities for companies looking to understand how renewable energy fits into the larger picture of the Smart Grid. As U.S. renewable energy electricity generation is projected to grow from 462 billion kilowatt-hours in 2010 to 649 billion kilowatt-hours in 2015, renewable energy manufacturers, utilities, policy makers and Smart Grid integrators face a daunting challenge to meet federal and state renewable energy targets, and revamp the century old utility infrastructure in the U.S.

The report sets out to address the renewable energy landscape for wind, solar, biomass, hydro and geothermal power sources from 2010 to 2015.  Also, the report offers a strategic assessment of each segment, along with a macro level assessment of market trends, opportunities, new business models, and conclusions around paths to success.

Collectively, Zpryme and ICP predict that the renewable energy manufacturing, equipment and technology market value for wind, solar, biomass, hydro and geothermal sources will more than double from 2010 to 2015, reaching $263.2 billion by 2015. Although these are staggering figures, companies operating in the renewable energy market face far more competitive pressures than Smart Grid oriented companies who will be charged with integrating renewable energy sources into the intelligent utility system of the future.

The Smart Grid market is in a much more nascent stage of its industry life cycle, and thus, there are relatively fewer companies in this space with the solutions and expertise to help utilities simultaneously bring renewable energy sources online and deploy Smart Grid technology. In fact, the report predicts Smart Grid Technology, termed Smart Renewable Technology, is projected to grow from $7.3 billion in 2010 to $13.6 billion in 2015.  Smart Renewable technology spending across the energy ecosystem is expected to be highest among the Operations domain, accounting for 40.0 percent of spending, with the rest being spread across Transmission and Distribution, Markets, Generation, End Users and Service Providers.

As geopolitical forces and global financial system integration become increasingly connected, the U.S. will continue to face highly sensitive energy price fluctuations as we see in today’s $3.50 price per gasoline. This sensitivity will continue to place upward pressure on utilities, policy makers, renewable energy manufacturers and Smart Grid vendors to rapidly develop a new energy infrastructure that mitigates U.S. energy price increases caused by geopolitical or financial disturbances. At the end of the day, the “Renewable Energy and the Smart Grid” report by Zpryme and ICP presents a strategic guide for companies seeking to mitigate the energy price threats faced by U.S. consumers in the short and near term.   

To view the executive summary or purchase the 41 page report please visit www.smartgridresearch.org.