Distributed energy generation market to reach $580.8 Bn by 2027

The global distributed energy generation (DEG) market size is expected to reach USD 580.8 billion by 2027 registering a CAGR of 11.5 percent, according to a new report by Grand View Research, Inc. The increasing need for energy and the high costs of grid expansion are the major factors driving the market growth. Low prices of DEG as compared to the conventional power generation methods are expected to provide a boost to the market, the report said.

Moreover, according to the report, inventions in DEG techniques, including floating solar PV, is expected to drive the market. “Declining costs of solar PVs is playing a contributory role in the expansion of the market. Feed-in tariffs in regions, such as North America, Europe, and the Asia Pacific, are poised to stir up the growth of the market. Favorable government policies and other government regulations including net metering are expected to increase the number of DEG installations at residential locations, such as underdeveloped and rural areas,” the Grand View Research report said.

It adds, “Extensive R&D, field trials, and demonstration projects have resulted in decreasing costs of DEG technologies, which, in turn, augmented market growth. China, India, and Japan are some of the key countries where energy demand has risen significantly. The grid connections are incapable of meeting such high demands that are further supplemented with energy loss problems and blackouts. As a result, institutions, schools, and universities opt for small power-generating stations using renewable sources. This is expected to grow the demand for this market.”