Global power sector giants ABB and Samsung SDI have just announced their global alliance to tackle the fast growing microgrid market. ABB is a leader in grid, power and automation technologies and Samsung SDI is the largest lithium ion battery manufacturer. The pair signed a memorandum of understanding outlining their cooperation in growing microgrids around the world. The two companies have clearly complementary technological expertise, as both storage (from Samsung SDI) and control (from ABB) technologies are critical for successful and cost-effective microgrid implementation. Although both are global companies with an international footprint, their geographic bases may also be a good fit with ABB having a strong presence in EMEA and Samsung SDI being based near many fast-growing Asian markets.

This announcement follows on the back of other significant recent corporate announcements concerning the microgrid space, most notably the launch of the SolarCity microgrid offering. It seems that important market players are preparing and positioning themselves for this exciting growth market and what will be a competitive environment. It is a very positive signal that both companies are seeing the microgrid market as strategic and requiring significant focus. However, as the overall market and many of the related technologies are still emerging, it will remain to be seen whether this massive corporate alliance will bring all the pieces required to be a leader in the microgrid space or constrain and restrict the players ability to engage and react to a fast changing market.