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Europe Distributed Power Generation Market - Growth, Trends, COVID-19 Impact, And Forecasts (2022 - 2027)

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  • 110 Pages
  • March 2022
  • Region: Europe
  • Mordor Intelligence
  • ID: 5572801
UP TO OFF until Sep 30th 2023
Europe distributed power generation market is expected to grow at a CAGR of more than 8.5% during the forecast period of 2022 - 2027. The COVID-19 pandemic has no negative impact on the Europe distributed power generation market. Countries like United Kingdom, Sweden and Netherlands has witnessed increase in distributed solar installations. For instance, during Q1 2020, the United Kingdom distributed solar power facilities with a capacity range of 0kW-5MW witnessed no significant impact. Solar PV with a capacity of 0-4kW saw the highest growth during Q1 2020. Factors such as rising environmental concerns and government policies for incentives and tax benefits for solar panel installation, high cost of grid expansion are expected to be major drivers driving the market. Also, advancement in technology leading to solar panel manufacturing cost reduction and increase in efficiency have been a major factor for the growth of the Europe distributed power generation market. However, the widespread generation of electricity from nuclear power in the countries like Netherlands, Romania, and Slovakia is likely to hamper the growth of the market.

Key Highlights

  • Solar PV sector is expected to witness significant growth in the forecast period, owing to factors like increasing shift towards renewable energy for energy generation, lack of efficient and reliable central grids, and its favorable economic factors.
  • Commercial and industrial sectors are showing a growing interest in distributed power generation, due to various economical benefits and constant source of energy to eliminate downtimes and equipment damage due to voltage fluctuations in conventional power grids. This have created a huge opportunity for distributed power generation market in the region.
  • United Kingdom is expected to witness significant growth in the European distributed power generation market during the forecast period.

Key Market Trends

Solar PV Based Distributed Power Generation to Witness Significant Growth

  • Solar PV has dominated the market in the past and is expected to do so in the forecast period too. The sector is the most popular form of distributed power generation due to factors like relatively low installation cost, drop in prices of solar panel manufacturing, and government subsidies.
  • Europe holds immense potential for rooftop solar installations, as close to 90% of Europe’s roof surfaces are unused. Many countries across Europe are modifying their policy structure and mechanism to evaluate remuneration levels.
  • In June 2020, the Norwegian government decided to postpone the planned reduction of the Plusskundeordningen solar-rebate program. Homeowners willing to install rooftop PV arrays were entitled to receive fixed sums of NOK 10,000, regardless of the system size. They can also claim an additional NOK 1,250 per kW installed for a maximum of 15 kW.
  • Moreover, in June 2021, the Berlin House of Representatives passed the Berlin Solar Act which requires the installation of solar photovoltaic systems on all new buildings in Berlin from 2023. Prior to this in July 2020, the Southwestern German state of Baden-Württemberg also made solar photovoltaic panels obligatory for all newly built non-residential buildings, as part of the climate protection law approved by the governing state coalition between the Greens and the conservative Christian Democratic Party. This regulation is likely to come into effect by the end of 2022.
  • The European Commission (EC) has introduced an French aid scheme, which is projected to support the rooftop solar development of 3.7 GW. EC has allocated a budget of USD 6.8 billion. The measure runs until 2026, which is likely to be open for PV operators installations with a capacity of up to 500 kW.
  • Owing to above points solar PV based distributed power generation is expected to dominate Europe distributed power generation market during the forecast period.

United Kingdom is Expected to Witness Significant Growth

  • Distributed solar power generation witnessed significant growth in the United Kingdom, mainly supported by favorable government policies and increased awareness of its usage for electricity generation.
  • As of 2020, the United Kingdom was estimated to have registered a total of 13563 MW of solar photovoltaic installed capacity across 1,045,010 installations across the country. In 2020, the United Kingdom installed 545 MW of the new solar photovoltaic capacity, a 27% Y-o-Y increase compared to 2019.
  • Out of the total installed capacity installed in 2020, nearly 60% of the capacity was from ground-mounted PV systems, the rest from rooftop commercial and industrial and residential segments. During Q1 2020, the distributed solar power facilities with a capacity range of 0kW-5MW witnessed no significant impact.
  • Moreover, According to the UK Solar Trade Association, as of 2020, there was an approximately 2 GW commercial and industrial rooftop solar PVs installed in the country, with many more companies planning to add solar PV systems. It is estimated that there are around 250,000 hectares of south-facing rooftop spaces in the United Kingdom.
  • Owing to above points, United Kingdom is expected to dominate the Europe distributed power generation market during the forecast period.

Competitive Landscape

The Europe Distributed Power Generation market is moderately fragmented. Some of the major companies are Engie SA, Maxeon Solar Technologies, Ltd. EDF Renewables, Compagnie de Saint-Gobain S.A, and WAGNER SOLAR GMBH, among others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Europe Distributed Power Installed Capacity and Forecast in MW, till 2027
4.3 Government Policies and Regulations
4.4 Recent Trends and Developments
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1 Technology
5.1.1 Solar PV
5.1.2 Wind
5.1.3 Diesel Gensets
5.1.4 Combined Heat and Power (CHP)
5.1.5 Other Technologies
5.2 Geography
5.2.1 Norway
5.2.2 Germany
5.2.3 Netherlands
5.2.4 United Kingdom
5.2.5 Italy
5.2.6 Rest of Europe
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.2 Engie SA
6.3.3 Maxeon Solar Technologies, Ltd.
6.3.4 EDF Renewables
6.3.5 Compagnie de Saint-Gobain S.A
6.3.6 Sunverge Energy
6.3.7 Bloom Energy
6.3.8 Canadian Solar Inc.
6.3.9 Ansaldo Energia SpA

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Engie SA
  • Maxeon Solar Technologies, Ltd.
  • EDF Renewables
  • Compagnie de Saint-Gobain S.A
  • Sunverge Energy
  • Bloom Energy
  • Canadian Solar Inc.
  • Ansaldo Energia SpA