Distributed Power Generation Market to rising energy demand along with government initiatives for clean energy deployment

The driving force for distributed power generation market is the decrease in the renewable component costs owing to favorable government mandates, flexible trade policies and economies of scale. Investments by government authorities and private parties toward solar and wind energy production will further complement the industry outlook. For instance, in 2016 new solar PV capacity all over the world increased by 50% in relation to other conventional energy and is set to surpass 70 GW by 2020, with China accounting for half of this development.

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Distributed Power Generation Market size will witness a robust growth owing to rising energy demand along with government initiatives for clean energy deployment. Rising concerns toward energy security coupled with measures to reduce carbon emissions will further fuel the industry growth. As per IEA, in 2016 renewables accounted for around two-third of the net power capacity addition across the world.

Company profiled in this report based on Business overview, Financial data, Product landscape, Strategic outlook & SWOT analysis:

  • Siemens
  • General Electric
  • ABB
  • Schneider Electric
  • SMA Solar Technology
  • Huawei Technology

Stringent government norms pertaining to environment conservation along with increasing inclination toward clean energy utilization will augment the distributed power generation market. Ongoing technological enhancements across the sustainable energy industry including advance photovoltaic modules, wind turbines and energy storage systems will positively sway the industry dynamics. The European Union in 2015, introduced the Renewable Energy Directive with an aim to consume 20% energy from renewable resources by 2020 across the region.

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Manufacturers across the Europe owing to stringent energy efficiency mandates have been compelled to align their focus toward sustainable energy installations. For instance, production of green transformers and micro grid infrastructure by leading market players has positively influenced the business scenario. Current electrification regime coupled with growing focus toward decentralized energy generation will further fuel the distributed power generation market.

Long route supply of electricity incurs significant monetary fund flow for utilities owing to high aggregate T&C losses. However, deployment of microgrid networks to cater the rising energy demand across grid isolated areas will institute a favorable business scenario. Refurbishment of conventional grid infrastructure with increasing need to restrain energy losses will further propel the distributed power generation market size.

Reduction in the overall capital cost of sustainable energy along with increasing concerns toward environmental proximity has instigated various countries to align focus across wholesale distributed power generation market. According to EPA, in 2017 the United States had additional 12 million distributed generation units which accounted to one sixth of the centralized power generation industry across the nation.

Government regulations to reduce greenhouse gas emissions have enhanced the use of renewable sources to generate power which has implied considerable impetus across the distributed power generation market. The U.S. federal tax reform offers incentive to improve energy efficiency of electrical systems with an aim to reduce overall electricity demand and carbon emissions.

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Eminent players in the distributed power generation market comprise of Siemens, General Electric, ABB, Schneider Electric, SMA Solar Technology, Huawei Technology and Bloom Energy amongst others.