Wilson Asset Management (WAM) has added a new investment to its portfolio: Microgrid Power, a strategic private equity investment meant to capture Australia’s growing microgrid market.
The Sydney, Australia firm will focus on renewable energy at shopping centers, offices, warehouses, and other commercial, residential, and industrial buildings, according to Jacob Grover, WAM investment analyst, writing in the company’s newsletter.
The company plans to leverage a model that leases roof space on buildings, installs solar panels and battery systems, and delivers cost-effective renewable energy directly to tenants.
Grover says the system reduces emissions and creates significant cost savings for both property owners and tenants through renewable energy generation and wholesale pricing advantages.
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He sees regulatory drivers advancing renewable energy in Australian real estate, including national and state-based renewable energy targets, the National Australian Built Environment Rating System (NABERS) system, and increased reporting requirements.
The announcement comes as Australia’s microgrid market continues to grow.
Grandview Research forecasts that Australia’s microgrid market will reach $4,535.2 million by 2030, up from 1,401.6 million in 2023.
By comparison, the research firm pegged the US microgrid market at $76.88 billion in 2023 and forecasts a 17.1% compound annual growth rate (CAGR) from 2024 to 2030.
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