The global annual investments in distributed energy resources (DER) will increase by 75% by 2030, according to a new report issued by Frost & Sullivan.
Up to $846 billion is expected to be invested in DER and an additional $285 billion in battery energy storage systems over the next decade.
Frost & Sullivan predicts a decline in investments in DERs due to COVID-19 in the short term.
However, post the pandemic, favorable regulations, declining project and technology costs and an increase in the demand of energy will help the DER market to recover and grow.
Distributed energy generation is expected to account for 10% of the world’s global installed power generation by 2030 and will be higher in developed economies.
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Maria Benintende, a senior research analyst with Frost & Sullivan, said: “The DER business model will play an increasingly pivotal role in the global power mix as part of a wider effort to decarbonise the sector.
“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).”
“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.”
Read more about the Growth Opportunities in Distributed Energy, Forecast to 2030 report.