Connect with us

Hi, what are you looking for?


Market Research

Distributed Generation Is On The Verge Of Disrupting The Power Sector, Says Lux Research

Increases in distributed generation have resulted in challenges to the power sector’s traditional way of doing things, and could result in further disruption, according to Lux Research.

A new report, Powering the Future: Evaluating the Contenders That Aim to Rule the Distributed Grid, published this week, makes the bold claim that “The traditional power industry — underpinned by large, distant, fuel-burning plants and transmission over long distances to reach end users — is on the cusp of serious disruption from distributed generation.” Further, the authors of the report believe that technologies like the Internet of Things and big data are key to the future of distributed generation (DG).

“The DG landscape is still in early stages with many players and no definitive winner, but renewables-focused DG installers and large industrial conglomerates are best positioned today,” said Katrina Westerhof, Lux Research Analyst and lead author of the report.

No single company has risen to the top of the distributed generation pile, nor has any one company managed to solve every piece of the distributed generation puzzle, but according to Lux Research, the companies that are doing the best so far are the ones which have made partnerships to make the most of diverse skills. Of specific interest is SunPower, thanks to its partnerships with battery startups Stem and Sunverge. In addition, Lux Research highlighted other partnerships including SolarCity and Tesla, Toshiba and Landis+Gyr, and ABB and Samsung SDI.

“Much of the challenge and opportunity lies in software for controlling, optimizing, and integrating DG, and while IT companies like Google, IBM, and Cisco have yet to make a serious mark, they’re particularly well-positioned to solve these problems and should take advantage of big opportunities in the future.”

Further key findings from the report include:

  • DG startups are mostly long shots. Nearly all startups lack both the technological breadth and the business strength to rival incumbents, meaning acquisitions are likely the best exit opportunities for most. But three startups are better positioned than most — Sonnen, Stem, and Green Charge Networks, each of which has benefited from a larger partner.
  • IT and home automation firms lack breadth. IT companies have a large role to play in the grid of the future, especially as the Internet of Things and big data come into play. But to date, companies like Google, IBM, and Cisco have shied away from a hands-on role, and risk falling behind in the race as other companies step in to fill the IT gap.
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (, and can be found writing articles for a variety of other sites. Check me out at for more.


You May Also Like

Clean Power

Many people who rent their homes cannot get solar energy because they don’t own the house. The person who owns the house needs to...


KB Home is building an energy efficient, connected community southeast of Los Angeles that will feature its own microgrid.

Clean Power

SunPower came by at the end of September and added 21 panels to my south-facing roof. This is only possible since SunPower understands the...


The Inflation Reduction Act of 2022 has been the story of the quarter in the cleantech world. It will do much to shape the...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.