The Global Market for Distributed Generation Technologies is Projected to Reach 155 Thousand Megawatts by 2020

Focus on Generating Power Closer to Point of Consumption to Leverage Cost Benefits, Drives the Distributed Generation Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Distributed Energy (DG) market. The global market for Distributed Generation Technologies is projected to reach 155 thousand megawatts by 2020, driven by the growing demand for cost effective energy and the ensuing focus on generating power closer to point of consumption. 

Distributed generation, also termed as Embedded Generation, refers to small-to-medium scale modular power generation plants that are embedded into the distribution network at a point closer to the site of consumption. The electric power industry worldwide is fast realizing the vast potential of distributed power generation as a ‘Game Changer’ technology that is providing the much needed resiliency over the traditional centralized electric grid. Distributed generation has emerged as a perfect solution for the rapidly growing demand for cost effective electricity.  Superior attributes of distribution generation (DG) driving widespread adoption include lower CAPEX; improved electric power security, reliability and quality; and a versatile source of standby power, emergency power, peak power, or lower-cost power. Small households, rural communities, large commercial buildings, and industrial facilities represent few of the many application areas where distributed generation is finding increasing deployments supported by its techno-commercial viability.

Future growth in the market will be driven by growing environmental concerns; favourable government policies, incentives and subsidies; and the rising need for improving the reliability of power supply for consumers. Declining costs, increasing support provided by DG technologies in expansion of renewable energy resources, and ability of DG to deliver power to off-the-grid remote infrastructure and facilities and electric vehicles represent other factors that are fast driving the transition towards distributed generation. Inefficiencies of centralized utility power generation model in terms of power losses, high greenhouse gas (GHG) emissions, resources wastage, and security issues are also expected to benefit market expansion in the coming years. The efficient, reliable, and eco-friendly attributes of renewables and distributed generation is slowly and steadily emerging as a threat to the traditional power utilities.

As stated by the new market research report on Distributed Generation, Asia-Pacific represents the largest market worldwide. Europe ranks as the fastest growing market with a CAGR of 9.9% over the analysis period. The macro goal of achieving a resilient energy union in the EU and the early mover advantage that the region enjoys is expected to drive growth, leading to a globally dominant position by end of the decade. Achieving the macro goal requires provision of industries and consumers with secure, sustainable, competitive, and cost-effective energy which in turn presents huge opportunities for the development of distributed generation and demand side management in the region.

Key players covered in the report include Activ Solar GmbH, Ballard Power Systems, Inc., Bergey Windpower Company, Bloom Energy Corporation, Fortis Wind Energy, FuelCell Energy, Inc., GE Power & Water, Hanwha Q CELLS Co., Ltd., JA Solar Holdings Co., Ltd., JinkoSolar Holding Co., Ltd., juwi, Inc., Sharp Corporation, Vergnet SA, Wind Energy Solutions (W.E.S.) B.V., XZERES Wind Corp., and Yingli Green Energy Holding Company Limited, among others.

The research report titled “Distributed Generation (DG): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections in volume (Annual Capacity Installations in Megawatts) and value (revenues in US$ Million) for the US, Canada, Japan, Europe, Asia-Pacific, Middle East & Africa, and Latin America. Key technology segments analyzed in volume terms include Renewable Technologies (comprising distributed wind, and solar PV), and Others.

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