Investments in renewables Monitoring and Control systems on the rise
Monitoring and control systems have a significant effect on optimizing the overall levelized cost of energy over the operational life of these assets
As renewable energy investments grow rapidly across on-grid and off-grid locations, investments in the monitoring and control of these assets have gained momentum globally.
Monitoring and control systems use sophisticated data analysis across their sensors and software controls to detect any operational issues with solar PV modules and wind turbines.
They can have a significant effect on optimizing the overall levelized cost of energy over the operational life of these assets.
Monitoring and control systems of renewable energy refers to more than just the software technology that monitors and controls generation of energy from these assets. It ensures that the service providers have a holistic approach to strategically manage the performance optimization of these assets.
Remote installation of renewable energy technologies has significant operation and maintenance challenges.
As a result, integrated monitoring and control systems solutions can have an economic advantage where it is logistically difficult to control and access these assets. Due to the logistics involved in operating and maintaining remote installations, integrated M&C solutions can provide an economic advantage on the total life cycle costs of the assets both across on-grid and off-grid sectors.
Non-performance of solar modules or wind turbines that rely on intermittent renewable sources of energy have costs and risks. Financial investors are keen to evaluate these assets based on a cost-benefit analysis of the risks involved.
Monitoring and control systems (M&C) solutions provide opportunities to optimize asset performance to meet a high-efficiency rating by reducing downtime. The M&C market offers a strong value proposition to OEMs and industry stakeholders and is driven by various factors.
These market drivers that effect the adoption of M&C solutions are:
- Renewable assets that are nearing the end of their warranty agreements create an attractive retrofit market opportunity for M&C systems;
- Achieving cost reductions while improving efficiency is one of the key strategic priorities for all asset operators;
- Supply chain bottlenecks and inventory mismanagement could pose a threat to the turnaround time of the renewables equipment and considerably increase downtime;
- Downtime and outages in off-grid locations can be extremely expensive;
- Long-term service agreements can secure recurring revenue opportunities for OEMs and independent solutions providers.
Navigant Research recently published its Renewable Energy Monitoring and Control Market report, which analyzes the global market for the monitoring and control of solar PV and wind power assets. It analyzes market issues, including drivers and challenges, related to distributed and utility scale solar PV and wind power.
Global market forecasts are broken out by region and segments and extend through 2028. According to Navigant Research, the global revenue for renewable energy M&C is expected to increase from $4.47 billion in 2019 to $12.8 billion in 2028. Solar PV M&C systems are expected to make up approximately $9.2 billion, or 72 percent, of total revenue in 2028.