Navigant publishes new report on ‘disruptive’ distributed generation

Navigant Research

Research consultancy, Navigant, has produced fresh analysis on the global distributed generation (DG) sector, which indicates the lengths utilities are considering in order to meet the threat posed by the technology.

This Navigant Research report analyses the global market for DG technologies, including solar PV (<1 MW), small wind turbines (SWTs; <500 kW), stationary fuel cells, natural gas generator sets (gensets; <6 MW), and diesel gensets (<6 MW).à‚ 
Navigant Research
The rise of distributed generation (DG) is one of the most important trends in the energy industry today. The reports says that, “Utility business models are threatened by the dramatic growth in the deployment of technologies that generate electricity onsite or at the distribution grid level, reducing the need to purchase electrons from centrally located utility-scale generation facilities.”

“To date, DG has been more disruptive in Western Europe than in any other region. Utilities are losing hundreds of billions of dollars in market capitalization as DG reaches higher levels of penetration in leading countries such as Germany, the United Kingdom, and Italy.”

The Navigant study goes on to assert that the prospect of similar losses by utilities in the United States is prompting a battle among utilities, the DG industry, and regulators seeking to strike a balance that allows for DG growth while allowing utilities to benefit.

Such a balance would enable DG customers and utilities to take advantage of new revenue opportunities enabled by DG while fairly compensating utilities for the ability to use the existing electrical grid as a backup service for onsite power at higher concentrations in the future. According to Navigant Research, annual installed capacity in the global DG market is expected to grow from 87.3 GW in 2014 to 165.5 GW in 2023.

Installed capacity, revenue, and pricing forecasts are included for the time period of 2014-2023 for 54 countries. à‚ The report also includes region- and country-specific market analyses, qualitative analysis of installed capacity by customer segment and/or power class for leading markets, and an overview of modelling assumptions.

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