Distributed generation will account for 10% of the world's global
installed power generation capacity by 2030 and will be higher in
developed economies, finds Frost & Sullivan
PVTIME - Frost & Sullivan's recent analysis, Growth Opportunities in Distributed Energy, Forecast to 2030, finds that the rate of annual investment in distributed energy resources (DER) will increase by 75% by 2030, with the market set for a decade of high growth. Favorable regulations, declining project and technology costs, and high electricity and demand charges are key factors driving investments in DER across the globe. The COVID-19 pandemic will reduce investment levels in the short term, but the market will recover. Throughout the decade, $846 billion will be invested in DER, supported by a further $285 billion that will be invested in battery storage.
DER business model will play an increasingly pivotal role in the global
power mix as part of a wider effort to decarbonize the sector," said Maria Benintende, Senior Energy Analyst at Frost & Sullivan.
"Additionally, solar photovoltaic (PV) will dominate throughout the
decade. Residential solar PV will account for 49.3% of total investment ($419 billion) with commercial and industrial solar PV accounting for a further 38.9% ($330 billion)."
Benintende added: "In developing economies, DER offers a
chance to bridge the electricity supply gap that still exists in a
number of country markets. Further, in developed markets, DER is a key
part of the transition to a cleaner and more resilient energy system."
DER offers significant revenue growth prospects for all key market participants, including:
- Technology original equipment manufacturers (OEMs): Offer
flexible after-sales support, including digital solutions such as asset
integrity and optimization services for their installed base.
- System integrators and installers: Target household customers and provide efficient and trustworthy solutions with flexible financial models.
- Energy service companies (ESCOs): ESCOs should focus on
adding DER deployments to expand and enhance their traditional role of
providing energy savings and demand-side management services to
- Utility companies: Deployment of DER can create new revenue
streams for utility companies, from real-time and flexibility markets.
Further, DER provides an opportunity to aggregate service offerings and
expand the customer base.
Growth Opportunities in Distributed Energy, Forecast to 2030 is the latest addition to Frost & Sullivan's Energy and Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
For further information on this analysis, please visit: http://frost.ly/467