Global distributed generation revenue to surpass USD 182bn by 2023 - Navigant

Sep 5, 2014 - Revenue from the global distributed power generation market, including solar and wind, will jump to over USD 182 billion (EUR 141bn) by 2023 from USD 97 billion in 2014, Navigant Research said on Thursday.

According to a market report by the research and consulting firm, annual spending on distributed generation technologies has significantly increased in the past few years due to new business models in the solar photovoltaic (PV) segment. Those include third-party owned systems, mainly involving solar lease and solar power purchase agreements (PPAs). This growth helped to reduce costs and improve technical capabilities, Navigant noted.

By region, distributed generation has reached the highest levels of penetration in Germany, the UK and Italy. At the same time, utilities are losing hundreds of billions of dollars in market capitalisation. “One of the most important issues for the energy industry is striking a balance between distributed generation growth and fairly compensating utilities for the ability to effectively use the existing electrical grid as a backup service for onsite power at higher concentrations in the future,” said senior research analyst Dexter Gauntlett.

Navigant's “Global Distributed Generation Deployment Forecast” report studies the distributed generation market in 54 countries.

(USD 1.0 = EUR 0.773)

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