The total installed capacity of distributed power generation installations worldwide is expected to reach 495 GW by the end of this year, according to new research.
In a recent report from analysis firm Research and Markets, ‘2016 Global Distributed Energy Outlook’, sector growth is found to be led by investments in combined heat and power (CHP) and distributed solar photovoltaics (PV).
Strong growth is expected for distributed energy storage systems for both residential and commercial applications, while microgrids structured around renewable power sources are also set to gain market share this year.
Among the key drivers for sector growth are an increase in global electrification as well as the falling costs of solar PV technologies, wind power and battery energy storage. In addition, the strong worldwide drive to reduce carbon emissions will boost growth for energy-efficient distributed power technologies.
Asia is predicted to emerge as a dominant region for opportunities in distributed generation this year, while renewable energy policies will continue to drive investment across Europe and North America.