BOULDER, Colo.--(BUSINESS WIRE)--Renewable distributed energy generation (RDEG) technologies, which contrast sharply with the traditional centralized utility model of large-scale power generation, represent a growing opportunity for the electric power industry. Worldwide, utility companies, investors, and policymakers are testing programs and business models to support this industry. According to a recent report from Pike Research, a part of Navigant’s Energy Practice, the RDEG market will grow from less than $69 billion in market value in 2012 to nearly $86 billion in 2017.
“The global electric power industry is evolving from a financial and engineering model that relies on large centralized power plants owned by the utilities to one that is more diverse – both in sources of generation and ownership of the generation assets,” says research analyst Dexter Gauntlett. “This transition to a more distributed system of power generation will require the evolution of both technologies and business practices. Like any emerging industry, new policies and standards must be developed and practiced before the market can mature.”
The new RDEG model and traditional, centralized systems are not necessarily mutually exclusive, and the former is still in its early stages. RDEG installations today represent less than 1 percent of total electricity generating capacity installed worldwide, according to the report. In a growing number of cases around the world, however, RDEG technologies are more cost-effective than centralized installations that require transmission to population centers. Europe will continue to be the largest market for RDEG during the 2012-2017 forecast period, with most countries expected to hit their renewable energy targets, the study finds, but Asia Pacific, led by China, will grow the fastest as untapped domestic markets for RDEG installations emerge.
The report, “Renewable Distributed Energy Generation”, explores the global market opportunity for RDEG technologies including distributed solar PV, small wind power, and stationary fuel cells. The report analyzes technology issues, demand drivers and barriers, and policy factors around the world that are influencing the adoption of RDEG technologies. The study includes an assessment of key industry players in each of the three major market segments, as well as detailed market forecasts through 2017 for installed capacity and revenue, segmented by world regions and major countries. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Renewable Distributed Energy Generation,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.