The global market for distributed energy resources management technology is expected to grow by 24.3% per annum between 2020 and 2029, according to a new report released by Guidehouse Insights.
Global spending on distributed energy resources (DER) management technologies is expected to increase from $826.4 million in 2020 to $5.9 billion in 2029.
While uptake of DER management solutions has been fragmented and piecemeal to date, more utilities are expected to leverage these technologies for digital transformation.
The gradual rise of DERs has differing levels of positive and negative effects on grid stability and health and as such utilities are expected to expand their investments in management solutions to optimise real-time management of grid assets.
Virtual power systems have been popular across Europe, while North American utilities have tended to explore DERMSs solutions. For utilities that may not require full-fledged operational systems, DER analytics (load, solar forecasting) can help bridge this gap and facilitate low levels of DER integration.
Michael Kelly, a senior research analyst with Guidehouse Insights, said: “Utilities are in the middle of multiple paradigm shifts as digital transformation and proliferation of DER converge to create increased complexity and opportunity.
“Most utilities would like to create value internally and for customers by balancing grid operations and planning with demand and DER output. A few utilities are even thinking about how to go a step further by enabling new markets to form around this new body of integrated DER. For this step to occur, the grid must be reinforced with more intelligence and greater control resolution.”
Read more about the report.