Global distributed generation revenue to grow 11.47%


A new report analysing the global market for distributed generation resources, forecasts an increase in revenue generation by 11.47% between 2017 and 2022.

Markets and Markets predicts revenue in the distributed generation resources market to grow from $60.04 billion in 2017 to $103.38 billion by 2022.

An increase in implementation of carbon emission reduction policies is driving the market growth.

In addition, utilities are increasingly investing in distributed generation including solar, wind and reciprocating engines to meet growing energy demands from residential, commercial and industrial consumers.

The on-grid segment is expected to hold a lion’s share of the market due to the cost-effective and simplicity in installing distributed generation resources tied with main grid systems.

On-grid systems help utilities to employ grid flexibility services and offer end-users programmes such as demand response to meet peak demand, according to a statement. Grid tied generation facilities also help reduce carbon emissions from fossil-fuel power plants.

Europe is expected to lead other regions in adopting distributed generation resources due to increases in energy demand as a result of urbanisation and industrialisation. Efforts set to achieve sustainable goals at national and regional level will play a huge role in the growth of the market.

Distributed generation resources and utility operations

Although there are increased calls for utilities to expand portfolios of distributed generation resources, the business model is a threat to utility revenue and hosting capacity.

In a study recently conducted by Accenture Research, 59% of utility executives said distributed generation will result in a decrease in utility revenue by 2030. The utility executives said they will give up hosting distributed generation capacity on their grid networks within ten years.

The study comprised interviews with 100 utility executives across 20 countries and is Accenture’s fourth analysing trends within the digitally enabled grid market. Read more…

The news follows US utility, Consumers Energy, launching a new solar distributed generation pilot programme for its customers.

The public utility that provides natural gas and electricity to 6.6 million of Michigan’s 10 million residents, partnered with solar provider SunPower to offer utility customers a full-service home solar solution. Continue reading…


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