Advanced Energy Perspectives

This post is the last in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

The year 2019 was one of the biggest for Electricity Delivery and Management, recording 13% growth globally and 14% in the United States; 2020 was strong as well, with global growth at 9% and 10% in the U.S.

Total revenue in the global market has traditionally been driven by large-scale transmission infrastructure, but Energy Storage has emerged as the fastest growing subsegment globally, with a CAGR of 47% from 2011 to 2020 and 35% growth last year, reaching $3.8 billion. Conversely, transmission, which comprised nearly half of Electricity Delivery and Management revenue in 2011, dropped from $6 billion to just over $3.2 billion in revenue since 2016.

In the United States, Transmission, which comprised nearly half of Electricity Delivery and Management revenue in 2011, has dropped from $6 billion to just over $3.2 billion in revenue since 2016. Meanwhile, Energy Storage has taken off, especially in the past year, jumping 139%, to $1.6 billion, in 2020, capping a run at 39% CAGR since 2011.

On May 6, the clean energy train slid off the tracks in Arizona, taking with it the hope for the timely passage of the proposed Arizona Corporation Commission (ACC) Energy Rules to reach 100% clean energy by 2050. More than three years after the rulemaking train left the station, the ACC rejected the proposed rules in a surprise 3-to-2 vote. That decision came after nearly three years of official stakeholder engagement, bipartisan cooperation, and extensive participation of utilities, consumer advocates, and communities of faith in the robust process, with all of those groups ultimately supporting the proposed rules package. But it turns out this was not the end of the line for the proposed rules. They are now back on track, in a new form, although the journey is far from over.

This post is the seventh in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

Advanced Industry consists of two subsegments: Manufacturing Machinery and Process Equipment and Industrial Combined Heat and Power (CHP). Manufacturing Machinery and Process Equipment tracks sales of industrial energy management systems, which are software and services for energy management within an industrial facility or across an enterprise to meet efficiency, cost savings, and sustainability targets while maintaining optimal operation of production processes.

In the United States, Advanced Industry revenue grew 10% overall from 2019 to 2020, to $11.6 billion. Since 2011, U.S. Advanced Industry revenue has more than doubled, growing at a CAGR of 12%. U.S. Manufacturing Machinery and Process Equipment revenue increased 10%, to $7.0 billion, in 2020, based on sales of industrial energy management systems. CHP revenue increased by 9% year-over-year, to $4.6 billion, following 13% growth in 2019. Though smaller in the United States than Manufacturing Machinery and Process Equipment, Industrial CHP has grown faster over the 2011-2020 time period, at 18% CAGR versus 9% for Manufacturing Machinery and Process Equipment.

In a blink of an eye, AEE Indiana ran through the finish line of the 2021 legislative session of the Indiana General Assembly at the end of April, and we’re just now catching up. While in the past two sessions we mostly  played defense, working to stop coal bailouts and moratoriums on plant closures. But this session the advanced energy industry got an opportunity to go on offense, with several bills that we favored making it to the Governor’s desk. We still had to temper a last minute Hail Mary from the Coal Council, which would have hindered utility efforts to move beyond coal, but overall the pros outweigh the cons in 2021. Here’s a rundown of where we ended up on our priority issues at the end of the Indiana legislative session.

This post is the sixth in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

Revenue from Advanced Fuel Delivery – defined as Fueling Stations serving electric, natural gas, and hydrogen vehicles – dropped slightly in 2020 to $9.3 billion globally. This followed a monumental year of 136% growth the previous year. In the United States, the market for Advanced Fuel Delivery also saw declines in 2019 (9%) and 2020 (21%), coming after three consecutive years of growth.