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Distributed Generation (DG) - Global Market Trajectory & Analytics

  • ID: 3440904
  • Report
  • September 2020
  • Region: Global
  • 548 pages
  • Global Industry Analysts, Inc
1 of 3

FEATURED COMPANIES

  • ABB Limited (Switzerland)
  • Ameresco, Inc. (USA)
  • Caterpillar, Inc. (USA)
  • Clarke Energy (UK)
  • Cummins, Inc. (USA)
  • E.ON SE (Germany)
  • MORE
The global market for Distributed Generation (DG) is projected to reach US$183.2 billion by 2025, driven by the growing focus shed on decarbonizing power generation and transmission. Ambitious clean energy targets aimed at increasing the share of renewables in the energy mix is also helping bring DG into the spotlight as the energy architecture of the future. Defined as energy generated close to the point of consumption by independent or grid connected microgrids, DG offers a host of benefits that promise to accelerate the pace of the global energy transition to a cleaner future. DG systems are rapidly proliferating the residential as well as commercial and industrial sectors in the form of solar photovoltaic panels, small wind turbines, natural-gas-fired fuel cells, emergency backup generators, municipal solid waste incineration, biomass combustion or cofiring and combined heat and power systems, among others. Few of the advantages of DG include lower CAPEX as it eliminates the need for long-distance transmission and distribution lines; reduced electricity losses along transmission and distribution lines; being small-scale electricity generation plants they are cost effective and easy to establish; increased ability to integrate renewable energy sources; help increase the reliability and performance of renewable energy; fulfills the role of backup power when the utility grid is down; features a flexible modular structure; and environmentally sustainable as it reduces the emissions while increasing power quality and reliability.

Given that localized renewables as compared to centralized generation of utility scale thermal power is the only way to decarbonize our energy systems, DG offers an attractive way to integrate increasing volumes of renewable energy into the energy mix. This is primarily because centralized, top-down power grid with its one-way flow of power is unsuited for generating and managing renewable energy. Decentralized system of power generation and ownership will be the energy structure of tomorrow, while 20th century paradigm of always-on, baseload power from fossil fuel will gradually fade. Recent advancements in developing interconnection standards and grid codes are helping boost DG. The rise of microgrids will emerge as a disruptive force breaking the once centralized electricity infrastructure into a more distributed system. Microgrids are localized groups of small, self-contained electricity grids with their own electricity source primarily renewables such as solar or wind. With deregulation of the electricity sector gaining momentum worldwide, alternatives to centrally planned power grids are emerging as attractive investments for private investors. An example is the growing interest in private microgrid implementation. Private deployment of microgrids is growing with companies building their own microgrids as power interruptions and blackouts become increasingly common and frequent as a result of extreme weather conditions compounded by aging energy infrastructure. Distributed energy has the potential to become consistently cheaper as compared to conventional power which is saddled by fixed costs of the massive centralized infrastructure. The price differentials, in the coming years, will result in increasing number of consumers migrating to alternative grids, leaving centralized utility grids to collapse under their own weight. The United States, China and Europe represent large markets worldwide with a combined share of 70.1% of the market. China also ranks as the fastest growing market with a CAGR of 11% over the analysis period as the country opens its electricity markets to competition and increased DR investments.

Competitors identified in this market include, among others:
  • ABB Limited
  • AES Distributed Energy
  • Ameresco, Inc.
  • Ansaldo Energia S. p.A.
  • Bergey WindPower Company
  • Bloom Energy Corporation
  • Canadian Solar Inc.
  • Capstone Turbine Corporation
  • Caterpillar, Inc.
  • Clarke Energy
  • Cummins, Inc.
  • E. ON SE
  • Flex Energy Solutions
  • FuelCell Energy, Inc.
  • GE Power
  • Huawei Technologies Co., Ltd.
  • Mitsubishi Heavy Industries Ltd.
  • Schneider Electric
  • Siemens AG
  • SMA Solar Technology AG
  • Vestas Wind Systems A/S
  • Wärtsilä Corporation
  • XZERES Wind Corp.
Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • ABB Limited (Switzerland)
  • Ameresco, Inc. (USA)
  • Caterpillar, Inc. (USA)
  • Clarke Energy (UK)
  • Cummins, Inc. (USA)
  • E.ON SE (Germany)
  • MORE
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Distributed Generation: A Prelude
  • Types of Distributed Generation Resources
  • Major Distributed Generation Technologies with Typical Installed Capacity Range
  • Categorization of Distributed Generation Technologies by Capacity Installations
  • Reciprocating Engines
  • Fuel Cells
  • Solar Photovoltaic (PV) Systems
  • Distributed Wind Turbines
  • Gas Turbines
  • Microturbines
  • Microhydroelectric Generators
  • Distributed Power Generation: A Game Changer for the Electric Power Industry
  • Solar Photovoltaic Technology Leading the Growth Run
  • Commercial Segment: A High Growth End Use Market
  • Europe: The Largest Regional Market
  • While Developed Regions Remain Primary Revenue Contributors, Developing Regions Exhibit Fast Paced Growth
  • World Distributed Generation Market (2019 & 2025): Percentage Breakdown of Revenues for Developed and Developing Regions
  • World Distributed Generation Market: Geographic Regions Ranked by CAGR (Revenues) for 2018-2025: China, Asia-Pacific, Europe, USA, Rest of World, Latin America, Canada and Japan
  • Myriad Benefits of Distributed Generation Drives Widespread Adoption
  • Major Factors Driving Deployment of Distributed Generation in Developed and Developing Economies
  • Environmental Benefits
  • Utility Benefits
  • Reliability and Energy Security Benefits
  • Grid Expansion and Equipment Benefits
  • Favorable Government Regulations and Policies: Critical for Market Penetration
  • Domestic Targets for Greenhouse Gas Emissions of Select Regions/Countries
  • Global Economic Outlook
  • Global Economic Outlook: Real GDP Growth Rates (%) by Country/Region for the Years 2017 through 2020
  • Reciprocating Combustion Engines (RCEs): The largest Segment
  • Distributed Solar: The High Growth Segment
  • Global Distributed PV Capacity Growth (in GW) by End-Use for the Period 2007-12, 2012-18 and 2019-24
  • Distributed Wind Power Becoming a More Accessible Option for Farmers in the US
  • US Distributed Wind Annual Capacity in MW for 2014-2018
  • Growing Interest in Distributed Fuel Cell Generation Systems to Benefit Stationary Fuel Cells
  • SOFCs: Ideal for Distributed Power Generation
  • Growing Prominence of Distributed Power Generation Benefits Market Prospects for Combustion Turbines
  • Distributed Power Technologies: Brief Details on Power Technology, Size Range, Power Efficiency Range, Fuel Options and Applications
  • Micro Turbines Witness Increasing Deployment in Distributed Energy Generation
  • Global Competitive Landscape
  • Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
  • ABB Limited (Switzerland)
  • AES Distributed Energy (USA)
  • Ameresco, Inc. (USA)
  • Ansaldo Energia S.p.A. (Italy)
  • Bergey WindPower Company (USA)
  • Bloom Energy Corporation (USA)
  • Canadian Solar Inc. (Canada)
  • Capstone Turbine Corporation (USA)
  • Caterpillar, Inc. (USA)
  • Clarke Energy (UK)
  • Cummins, Inc. (USA)
  • E.ON SE (Germany)
  • Flex Energy Solutions (USA)
  • FuelCell Energy, Inc. (USA)
  • GE Power (USA)
  • Huawei Technologies Co., Ltd. (China)
  • Mitsubishi Heavy Industries Ltd. (Japan)
  • Schneider Electric (France)
  • Siemens AG (Germany)
  • SMA Solar Technology AG (Germany)
  • Vestas Wind Systems A/S (Denmark)
  • Wärtsilä Corporation (Finland)
  • XZERES Wind Corp. (USA)
3. MARKET TRENDS & DRIVERS
  • Robust Demand for Electricity Closer to the Point of Consumption Drives Proliferation of DG Technologies
  • Projected Global Demand for Electricity (MWh): 2015, 2020, 2025, 2030 & 2035
  • Global Primary Energy Consumption (Billion toe): Growth Trajectory for the Period 1990-2040
  • Global Energy Consumption (Billion toe) by Country/Region (1995, 2017 and 2040): Breakdown for USA, China, India, Russia, Brazil, EU, Middle East and Rest of World
  • Estimated Global Power Generation Infrastructure Requirement (in US$ Billion) for China, India, Latin America, and North America over the Period 2010-2030
  • Inefficiencies in Traditional Power Generation Model: Foundation for Market Growth
  • High DG Penetration in the Long Run to Lead to Utility Companies’ ‘Death Spiral’
  • Growing Focus on Renewable Energy: A Strong Growth Driver
  • Leading Wind Power Countries Worldwide (2018): Ranking Based on Key Wind Power Facts
  • Global Investments (US$ Billion) in Renewable Energy by Source: 2018
  • World Installed Base of Wind Energy (in Megawatts) by Geographic Region: 2018, 2021 & 2024
  • Smart Grids to Complement Integration of DG Resources in Electric Utility Network
  • Innovative Application of Smart Grid in Enabling Energy Security
  • Distributed Generation: A Key Enabler of Smart Cities
  • Microgrids and Distributed Generation Transform Electricity Management Forever
  • Global Distributed Generation Capacity in Microgrids by Type (2019): Percentage Breakdown of Capacity Installations for Diesel Generators, Fuel cells, Natural Gas Generators, Small Wind Turbines, Solar PV Systems, and Others
  • DG Prosumers Continue to Depend on Utility Grids, Equitable Cost Sharing a Major Priority
  • Virtual Power Plants (VPPs): The DG Technology with Tremendous Growth Potential
  • Affordable, Efficient Energy Storage Technologies to Magnify the Disruptive Effect of DG
  • Commercialization of Stationary Fuel Cells to Revolutionize DG Market
  • Solar PV Attains Grid Parity: A Major Milestone for DG
  • Surging Demand from Telecom Network Operators Augurs Well for the DG Market
  • Favorable Demographic and Urbanization Trends Strengthens Market Prospects
  • World Population by Geographic Region (2000-2050) (in Millions)
  • Rapid Urbanization: A Mega Growth Driver for Distributed Generation
  • World Population Urbanization Rate (%) by Region/Country: 2016 & 2040
  • Key Challenges Hampering Large Scale Deployment of Distributed Generation
  • Technical Barriers
  • Lower Energy-Efficiency, Higher Costs of DG Equipment
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

UNITED STATES
  • Challenging Times Ahead for US Utilities as Distributed Generation Market Surges Ahead
  • US Distributed Generation Capacity by Technology Type (2019): Percentage Breakdown of Capacity for Coal, Natural Gas, Renewable Energy Resources, and Others
  • Mixed Prospects for Distributed Wind Power Market in the US
  • US Distributed Wind Systems Market with 2014 and 2030 Targets for Levelized Cost of Energy, Capacity Factor, and Average Installed Cost
  • High CAPEX Continues to Constrain Fuel Cells Market
  • US Manufacturers to Leverage Innovation to Capture a Slice of the Global Distributed Wind Market
  • DERMS Market to Grow in Sync with DG Penetration
CANADA
  • Brief Market Overview
JAPAN
  • Focus on Renewable Power to Spur Growth of Japan’s Distributed Wind Power Market
CHINA

EUROPE
  • Germany: Biggest Electricity as well as Distributed Energy Market in EUROPE
FRANCE

GERMANY

ITALY

UNITED KINGDOM

REST OF EUROPE

ASIA-PACIFIC
  • Developing Asian Countries Offer Significant Growth Opportunities
  • Indonesia: Strong Business Case for Small Scale Distributed Power Generation
  • Thailand: Government Support Pivotal in Driving Adoption of DG Technologies
AUSTRALIA

INDIA

REST OF ASIA-PACIFIC

LATIN AMERICA

BRAZIL

REST OF LATIN AMERICA

REST OF WORLD

IV. COMPETITION
  • Total Companies Profiled: 48
Note: Product cover images may vary from those shown
3 of 3
  • ABB Limited (Switzerland)    
  • AES Distributed Energy (USA)    
  • Ameresco, Inc. (USA)    
  • Ansaldo Energia S.p.A. (Italy)    
  • Bergey WindPower Company (USA)    
  • Bloom Energy Corporation (USA)    
  • Canadian Solar Inc. (Canada)    
  • Capstone Turbine Corporation (USA)    
  • Caterpillar, Inc. (USA)    
  • Clarke Energy (UK)    
  • Cummins, Inc. (USA)    
  • E.ON SE (Germany)    
  • Flex Energy Solutions (USA)    
  • FuelCell Energy, Inc. (USA)    
  • GE Power (USA)    
  • Huawei Technologies Co., Ltd. (China)    
  • Mitsubishi Heavy Industries Ltd. (Japan)    
  • Schneider Electric (France)    
  • Siemens AG (Germany)    
  • SMA Solar Technology AG (Germany)    
  • Vestas Wind Systems A/S (Denmark)    
  • Wärtsilä Corporation (Finland)    
  • XZERES Wind Corp. (USA)    
Note: Product cover images may vary from those shown
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