Installed distributed energy resources (DER) capacity is expected to total $1.9 trillion in investment from 2015 to 2024, according to a recent report from Navigant Research.
Navigant says increasing investment in DER represents a major shift away from the centralized, one-way electrical grid that has been the status quo for the past century. DER developments are challenging incumbent grid operating models, requiring a more dynamic and flexible network with advanced communications and orchestration to ensure stability, efficiency and equality among diverse resources.
“Rapidly expanding DER investment has generated concern and optimism throughout the power industry as regulators and grid operators work to understand the evolving landscape,” says Mackinnon Lawrence, senior research director with Navigant Research. “The shift away from centralized generation is going to require grid operators to develop more innovative technologies and solutions.”
In the coming decade, most countries are expected to see more DER capacity additions – largely in the form of solar PV, generator sets and energy storage – with the ratio of DER capacity deployment compared with centralized generation expected to reach 5:1 by 2024.
According to the report, North America, Europe and Asia Pacific are all anticipated to see high levels of growth in new DER resources.
The Distributed Energy Resources Global Forecast provides a quantitative analysis of the global market for DER technologies and assesses regional market developments and trends, with forecasts for installed capacity and revenue, through 2024. The technologies covered include small and medium wind turbines (<500 kW), distributed solar PV (<1 MW), microturbines, stationary fuel cells, diesel and natural gas generator sets (<6 MW), distributed energy storage systems, microgrids, electric vehicle charging, and demand response.
An executive summary of the report is available for free download on the Navigant Research website.