The Distributed Energy Generation (DEG) Market global size is expected to value at USD 573.7 billion by 2025. The market is subject to witness substantial growth due to numerous environmental advantages, and high efficiency in comparison with the conventional power generation systems. Distributed energy generation (DEG) diminishes the need for constructing a transmission capacity, allowing a reduction in the line cost. Additionally, the lower operational cost associated with the use of distributed energy generation (DEG) in comparison with the traditional systems is propelling the growth of the distributed energy generation (DEG) industry in recent years.
Similarly, recent advancements in distributed energy generation methodologies like that of floating solar photovoltaic are expected to positively influence the distributed energy generation (DEG) market. The reduction in the cost of solar photovoltaics due to numerous government initiatives and subsidies is spiraling the demand for distributed energy generation (DEG) systems. Globally, the distributed energy generation (DEG) market is predicted to grow at a CAGR of 15.0% in the forecast period, providing numerous opportunities for industry players to invest in research and development in the DEG industry.
The generation of electricity with the help of distributed renewable systems offers lower initial cost, reduced operational and maintenance cost along a reduction in the per-unit cost of electricity. Such advantages help consumers to adopt distributed energy generation (DEG) systems over conventional energy systems. The use of distributed energy generation (DEG) provides numerous environmental benefits regarding renewable energy generation. Furthermore, growing awareness regarding the importance of clean energy resources is spurring the growth of the industry in the forecast period. The adoption of renewable energy reduces the generation of greenhouse gas emissions. DEG systems are fairly inexpensive in comparison with traditional electricity generation systems. These factors are playing a key role in the expansion of the distributed energy generation (DEG) industry over the forecast period.
Typically, power generation plants require large areas and centralized processing units. The development of the latest trend involving distributed systems, allows decentralization of energy generation systems. In distributed energy generation (DEG) systems, various energy conversion units are located near energy consumers, as large units are replaced by small capacity units. A distributed energy generation system is highly efficient, dependable, and environment-friendly. Applications of the distributed energy generation (DEG) systems are commonly found in small hydropower plants, biomass power plants solar PV systems, wind turbines, and geothermal power units. These systems play a key role in electric power distribution as well. Distributed generation systems are commonly referred to as multiple power sources feeding on the single loads at multiple locations, or standalone and isolated power units located at the point of use.
Benefits associated with the use of distributed energy generation (DEG) are reduction in transmission and distribution losses due to convenient placement and enhanced loading capabilities. The adoption of distributed energy generation (DEG) systems allows the generation of electricity from waste products or renewable resources such as biomass or biogas, which is considered an ideal replacement for fossil fuels. The distributed energy generation (DEG) does not require additional circuitry and uses existing single or three-phase generation.
The distributed energy generation (DEG) industry is divided into regional market segments such as North America, Europe, Asia-Pacific, Latin America, and Africa. North America has shown major growth in recent years owing to the rise adoption of the latest technologies and the existence of well-established infrastructure. Asia-Pacific region is predicted to hold a major market share in the distributed energy generation (DEG) market with massive growth in the forecast period.
Countries such as India and China lead the Asia-Pacific market with the growing requirements of micro-grids and significant investment by leading industry players due to numerous potential opportunities in the region. The key players in the distributed energy generation (DEG) industry are Capstone Turbine Co., General Electric Inc., Vestas Wind Systems, Siemens Co., and Caterpillar Power Plants.
Distributed Energy Generation (DEG) Technology Outlook (Volume, Megawatts; Revenue, USD Million, 2014 - 2025)
• Wind Turbine
• Reciprocating Engines
• Fuel Cells
• Solar Photovoltaic
• Gas & Steam Turbines
Distributed Energy Generation (DEG) Application Outlook (Volume, Megawatts; Revenue, USD Million, 2014 - 2025)
• Commercial & Industrial
Distributed Energy Generation (DEG) Regional Outlook (Volume, Megawatts; Revenue, USD Million, 2014 - 2025)
• North America
• the U.S.
• the Asia Pacific
• Central & South America
• Middle East & Africa
Research Support Specialist, USA
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