A new report from Navigant Research provides a quantitative analysis of the global market for distributed energy resources (DER) technologies, with installed capacity and revenue forecasts in the commercial and industrial (C&I) and residential segments, through 2028.
Rapidly expanding investment in DER represents a major shift from the centralized, one-way electrical grid. Market growth has generated concern and optimism throughout the power industry as regulators and grid operators work to understand the evolving landscape that is redefining the relationship between utilities and customers. According to the report, global annual revenue from DER capacity is expected to grow from $172.5 billion in 2019 to $649.6 billion in 2028 at a compound annual growth rate of 15.9%.
“The global proliferation of DER has begun to have a significant influence on the electricity grid and industry,” says Roberto Rodriguez Labastida, senior research analyst at Navigant Research. “Initially, DER was used at the market edge, where conventional power was difficult and expensive to provide. However, technology advances, business model innovation, changing regulations, and sustainability and resilience concerns have brought DER into the core of future deployment of energy infrastructure.”
According to the report, the shift from centralized generation requires innovative technologies and solutions on the part of grid operators. Advanced software and hardware are expected to enable greater control and interoperability across heterogeneous grid elements that are key components of the Energy Cloud.