Impact of COVID-19 on Distributed Generation Market : Implications on Business

 Global Distribution Generation Market: Snapshot

Owing to the increased funds diverting towards the development of renewable energy generation infrastructure, the global distribution generation has acquired immense popularity. In the past few years, there is an increased inflow of new vendors and policy makers are more focused towards the distribution generation market due to the constant demand for clean energy. All conductive policies are encouraging the adoption of clean energy and this may be presumed to drive the distribution generation market in the coming years.

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Various other factors influence the distributed generation market to grow. There is a constant rise in demand for electricity in both developed as well as developing nations for industrial and residential purposes. There is this increasing cost and strict regulations that limits the use of power that is generated from fossil fuels. Development in off-grid locations are also being focused by power distribution infrastructure which further adds to the growth and demand of the distributed generation market.

The factor that may restrict the growth of the market is the reluctance of investment in the distribution generation market. However, because of their compact size, practical thermal output and low unit cost, these distribution generation engines are widely used for power generation. Quick and flexible start-up technologies used for generating power are the main reasons that may boost up the demand for distributed generation market in the coming years.

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The global distribution generation market is presumed to witness a promising growth within the forecast period of 2017 to 2025. It is presumed to rise at US$35.56 bn by 2025 with a CAGR of 8.2 %.

distributed generation market

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Based on segmentation by technology, the distribution generation market is classified into fuel cells, micro turbines, reciprocating engines, wind turbines, combined heat and power (CHP), and solar photovoltaic. Out of these, the CHP technology characterizes a high quotient of flexibility and may be utilized with alternative energy production technologies like fuel cells, reciprocating engines as well as micro turbines. The carbon emission levels are also low and thus, cost effective clean energy generation is produced.

On the basis of application, the market is segmented into on-grid and off-grid application. Based on segmentation by end users, the market is categorized into industrial, commercial, buildings and institutions and residential segments.

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