(Credit: Pixabay)The rate of annual investment in distributed energy resources (DERs) will increase 75% by 2030, with the market set for a decade of high growth. That’s according to Frost & Sullivan's recent analysis, "Growth Opportunities in Distributed Energy, Forecast to 2030.”
The report says favorable regulations, declining project and technology costs, and high electricity and demand charges are key factors driving investments in DERs across the globe. The research goes on to state that the covid-19 pandemic will reduce investment levels in the short term, but the market will recover. Throughout the decade, $846 billion will be invested in DERs, supported by a further $285 billion that will be invested in battery storage.
"The DER business model will play an increasingly pivotal role in the global power mix as part of a wider effort to decarbonize the sector," said Maria Benintende, Senior Energy Analyst at Frost & Sullivan. "Additionally, solar photovoltaic (PV) will dominate throughout the decade. Residential solar PV will account for 49.3% of total investment ($419 billion) with commercial and industrial solar PV accounting for a further 38.9% ($330 billion)."
Benintende added: "In developing economies, DER offers a chance to bridge the electricity supply gap that still exists in a number of country markets. Further, in developed markets, DER is a key part of the transition to a cleaner and more resilient energy system."
The report notes that DERs offers significant revenue growth prospects for all key market participants, including:
