Distributed Generation Capacity Expected To Double By 2023

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Navigant Research has released a new report analysing the distributed generation technology market, and reached the conclusion that the industry is expected to expand rapidly over the next few years.

Analysing forecasts for installed capacity, revenue, and pricing through 2023 for the distributed generation market, Navigant found that cost reductions, government incentives, and rising interest in fossil fuel divestment will push the distributed generation market quickly, with the installed capacity expected to more than double in the next 9 years.

Navigant expect the installed capacity of distributed generation to grow from 87.3 GW in 2014 to more than 165 GW in 2023.

Annual Distributed Generation Installed Capacity and Revenue by Region, World Markets: 2014-2023



“Utilities in Western Europe 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,” said Dexter Gauntlett, senior research analyst with Navigant Research. “The prospect of similar losses by utilities in the United States is prompting a struggle among utilities, the DG industry, and regulators over the future of DG models.”

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The report is locked behind the requisite pay-wall all such reports arrive with, but Navigant Research did provide two separate press releases detailing some of the figures found in its recent report.

The second press release detailed the author’s expectations that revenue from distributed generation is expected to surpass $182 billion by 2023, up from $97 billion in 2014.

“One of the most important issues for the energy industry is striking a balance between DG growth and fairly compensating utilities for the ability to effectively use the existing electrical grid as a backup service for onsite power at higher concentrations in the future,” said Gauntlett. “Utilities that pro-actively engage with their customers to accommodate DG – and even participate in the market themselves – limit their risk and stand to benefit the most.”

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Joshua S Hill

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