Global Distributed Generation (DG) Market to Reach $168.3 Billion by 2024

Highlights :

  • Europe and China are marked out as key growth drivers for the sector.
  • Distributed generation is being seen as a key way to derisk power networks from extreme climate events too.

Market research company Global Industry Analysts Inc., (GIA) has released a report where it projects the size of the global distributed generation market, in a post covid scenario.

Distributed 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 than the central station power generators. Given the challenges in expanding power transmission grid, and the urgent need for improving the reliability of power supply for consumers, DG is increasing its relevance for electric power networks.

DG technologies support the expansion of renewable energy resources, and aid in delivering power to off-the-grid remote infrastructure and facilities and electric vehicles. Amid the COVID-19 crisis, the global market for Distributed Generation (DG) is projected to reach US$168.3 Billion by 2024, registering a compounded annual growth rate (CAGR) of 9.4% over the analysis period.

Europe represents the largest regional market for Distributed Generation (DG), accounting for an estimated 32.5% share of the global total. The market is projected to reach US$60.1 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 11.1% over the analysis period.

Growing environmental concern, the dramatic fall and rise of the global economy, technological innovations, and the liberalization of the electricity market have fostered a fertile ecosystem for the growth for the distributed generation market. Environmental regulations are major growth drivers for the DG market, particularly in European countries, with governments promoting eco-friendly technologies that benefit society, preserve biodiversity, and help in meeting international environmental commitments. Favorable government policy changes, incentives and subsidies are promoting market growth. Europe is the largest regional market for distributed generation.

Increasing investment and the development of new business models, including solar lease, have accelerated the technical capabilities and affordability of distributed generation technologies substantially over the last few years in Europe. Rising demand for energy from industrial, commercial and residential sectors is leading to strong growth of DG systems in North America region. Favorable government policies, incentives such as tax credits and focus on renewable energy are expected to foster market growth. The growing drive for rural electrification, particularly in developing economies, is also driving demand for distributed generation.

With mass production of solar panels leading to a sharp decline in prices of solar PV modules and incentives being offered for solar panel installations, distributed solar generation market is poised for growth. Rooftop modules represent one of the fastest growing segments of distributed solar PV market, with the modules being mounted at fixed angles on both pitched and flat roofs

"Want to be featured here or have news to share? Write to info[at]saurenergy.com
      SUBSCRIBE NEWS LETTER
Scroll