Global Distributed Power Generation Market - Analysis of Growth, Trends and Forecasts (2018 - 2023)
The global distributed power generation market is likely to grow at a significant rate, owing to the evolving landscape, in terms of innovations in technology and business models, government policies, and greater need for energy security, resiliency and reduction in green-house gases emissions. The demand for electricity is growing on account of expanding commercial and industrial establishments, and increasing usage of electrical appliances. Globally, the governments have focused on implementation of energy efficiency measures and promote renewable energy generation in order to tackle the issue of climate change. The distributed power generation has multiple benefits in comparison to centralized power generation, which include operational and strategic benefits. One of the most important benefits of distributed power generation is its remarkably better power efficiency, which results from offsetting of transmission and distribution losses. Moreover, improvement in grid infrastructure and decline in cost of solar power generation has provided a big impetus to distributed power generation globally. Europe dominated the global market for distributed power generation, however, the Asia-Pacific region is likely to display a higher CAGR during 2018-2023 (henceforth referred to as the forecast period).
Declining Cost of Solar Power – Drive the Market
Globally, the drop in the cost of solar power generation is a big boost for distributed power generation system. The governments across the globe have focused on building solar power infrastructure in order to promote clean energy generation. The technological advancements and policy-level support from governments across the globe have improved the economic viability of solar power. Moreover, the development of energy storage technology has favored the case of solar energy. The solar power plants can be developed at power consumption centers and integrated with the grid network, which can reduce the requirements of centralized power systems. The development of such distributed power systems can improve the resiliency of electricity grid network. The cost of solar power is expected to reduce further in the near future, which is expected to provide a big thrust to the distributed power generation market during the forecast period.
On-grid Deployment - Major Market
The on-grid deployment of distributed power generation on account of improved grid infrastructure and benefits associated with grid integrated distributed power generation systems. With development of on-grid distributed power generation systems, the power trading can be made feasible, which is a big boost for the power sector. Moreover, the load balancing on the grid and demand response related issues can be addressed efficiently. Therefore, on account of benefits associated with on-grid systems, the deployment of on-grid distributed power generation has major share in the global distributed power generation market.
Europe to Dominate the Market Growth
The European region is expected to dominate the market, owing to increasing focus on upgradation of power infrastructure. The governments of European countries have taken holistic approach in tackling climate change related issues, which has led to reduction in the usage of fossil fuel and nuclear power generation. The development of distributed power generation in Europe can bridge the gap created by reduction of centralized conventional power plants.
Key Developments in the market
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