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The global distributed energy generation market size is expected to reach $573 billion by 2025
Written By: Jen Neville
May 25, 2018
The global distributed energy generation (DEG) market size is expected to reach USD 573.7 billion by 2025, according to a new report by Grand View Research, Inc., registering a CAGR of 15.0% during the forecast period. Owing to their environmental benefits, preference for DEG systems will be higher as compared to conventional energy systems.
DEG eliminates the need for building a transmission capacity that reduces the line cost.In addition, low prices of DEG compared to conventional energy generation are anticipated to provide a fillip to the market.
Moreover, innovations in DEG technologies, such as floating solar photovoltaic, is likely to propel the market.Decreasing cost of solar PVs is playing an instrumental role in the development of the market.
Feed-in tariffs in regions including Asia Pacific, Europe, and North America are poised to stoke the growth of the market.
E.ON SE; Vestas Wind Systems A/S; Capstone Turbine Corporation; Caterpillar Power Plants; Ballard Power Systems Inc.; Doosan Fuel Cell America; FuelCell Energy Inc.; Rolls-Royce Power Systems AG; Sharp Corporation; Suzlon Energy Limited; General Electric (GE); First Solar; SIEMENS AG; Toyota Turbine and Systems Inc.; and ENERCON GMBH are some of the major players in DEG market.
Further key findings from the report suggest:
– The wind turbine segment accounted for revenue share of over 29.0% in 2016. Factors such as high efficiency, redundant safety, and quiet operation are the key characteristics projected to contribute to the growth of the wind turbine segment over the forecast period
– In 2016, solar photovoltaic accounted for 21.0% of the overall market volume and is expected to register a CAGR of 16.8% during the forecast period. The growth of the segment can be attributed to decrease in its prices, which has increased the local utilization, thereby enabling the switch from traditional energy sources
-Supportive regulations and favorable government policies such as net metering are likely to increase the number of DEG installations for residential applications in rural and underdeveloped areas
-Several countries are committed to reducing carbon emissions under the Kyoto protocol, which is driven by the European Union. A number of countries have switched to renewable energy generation
-Regional expansion and R&D are the key strategies adopted by major market players to strengthen their position. Companies in the market are continuously trying to innovate and develop new technologies
-In July 2015, Ballard Power Systems entered into an agreement with AkzoNobel to provide one-megawatt ClearGen fuel cell distributed generation system for Hydrogène de France (HDF) to generate electricity and supply it to local grid.
Read the full report here.