This is one in a series of excerpts from the Advanced Energy Now 2019 Market Report, prepared for AEE by Navigant Research.

Advanced Industry, the sixth largest advanced energy segment both globally and domestically, contains two subsegments: Manufacturing Machinery and Process Equipment and Industrial Combined Heat and Power (CHP). Manufacturing Machinery and Process Equipment is tracked through 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.

Global Advanced Industry revenue reached $54.5 billion in 2018, a 12% increase over 2017, building on 11% growth the year before. This is an acceleration over previous years of steady growth driven by the expansion of manufacturing machinery and process equipment caused by increased global production and the adoption of advanced technology in industrial processes. Compound Annual Growth Rate (CAGR) for global Advanced Industry revenue over the 2011-18 period was 9%. Growth in U.S. revenue was even greater over the period since 2011, more than doubling in that time, with CAGR of 12%, but essentially flat in 2018.

In May, we convened one of the hottest events exploring the intersection of U.S. finance and advanced energy with both national and state impacts — AEE’s Clean Street Meets Wall Street CEO Forum. Coming from a range of perspectives, participants delved into cutting-edge topics, including current risks and opportunities in today’s electricity markets, and trends in the advanced energy investment pipeline. The New York City event was also a Who’s Who for networking and side conversations with executives from the advanced energy industry, financial institutions, electric utilities, and technology companies.

This is one in a series of excerpts from the Advanced Energy Now 2019 Market Report, prepared for AEE by Navigant Research.

Revenue from Advanced Fuel Production grew to $160 billion worldwide in 2018, an increase of 11%, after bouncing back in 2017 from down years in 2015 and 2016. In the United States, Advanced Fuel revenue staged an even bigger comeback, reaching $33.4 billion in 2018 on 12% growth year over year. In the United States, that growth was led by Ethanol, which had declined sharply in revenue in previous years, and Biodiesel, while globally CNG and LNG used for transportation accounted for the biggest revenue gains over the past two years. The Compound Annual Growth Rate (CAGR) for global Advanced Fuel Production revenue over the 2011-2018 period was 5%, while in the United States compound annual growth was -4%.

Rate designs for distributed energy resources (DERs) remains a hot topic. States are taking different approaches, but some are better than others. Some states are making adjustments (typically reductions) to flat kilowatt-hour rates, such as net metering and buy-back rates, or adding/raising fixed charges that often focus exclusively on utility revenue without looking at DER from a total value perspective. DER can impose costs on the system, but it can also provide value, both to the utility and more broadly to the public, and rates and compensation should take both into account. In its continuing effort to comprehensively assess the value of DER and design rates accordingly, New York recently made some landmark adjustments that should provide fairer treatment for customers that have significant distributed generation facilities, such as combined heat and power (CHP) systems. The improved rate is also available as an option for all customers, including residential customers without DG, and is likely to be a good choice for customers with electric vehicles and certain types of DER.

This is one in a series of excerpts from the Advanced Energy Now 2019 Market Report, prepared for AEE by Navigant Research.

Advanced Transportation was the largest advanced energy segment worldwide in 2018 for the second year in a row, with an estimated $494.8 billion in revenue, up 2% from 2017 and 8% the year before. Since 2011, the Compound Annual Growth Rate (CAGR) of Advanced Transportation globally was 6%. At the end of 2018, over 5 million plug-in electric vehicles (PEVs) were on the roads worldwide. PEV sales are poised to enter a period of strong growth, driven by lower battery prices, maturing plug-in hybrid and all-electric powertrain systems, and a proliferation of new models. By the end of 2027, Navigant Research expects there to be 10 times as many PEVs on the road. In the United States, PEV sales are surging as well, with overall Advanced Transportation revenue growing 34% year over year and accounting for nearly one-third of U.S. advanced energy revenue growth in 2018. Since 2011, U.S. Advanced Transportation revenue has grown at a compound annual rate of 15%.