The Global Market for Distributed Energy Generation

Report Highlights

• The global market for distributed generation technologies was worth $43.8 billion in 2007. This is expected to reach $51.0 billion in 2008 and $127.0 billion in 2013, for a compound annual growth rate (CAGR) of 20.0%.
• Fuel-based technologies represent the largest market segment, worth $34.4 billion in 2007 and an anticipated $39.6 billion in 2008. This should reach $93.4 billion in 2013, for a CAGR of 18.7%.
• Renewable technologies generated $9.4 billion in 2007 and an estimated $11.4 billion in 2008. This is expected to reach $33.6 billion in 2013, for a CAGR of 24.1%.

INTRODUCTION

STUDY GOALS AND OBJECTIVES

BCC’s goal in conducting this study was to assess and describe the current status of the worldwide distributed energy (DE) generation industry for all major technologies, and assess the potential growth of that industry. More specifically, the study included the following objectives: (1) summarize existing DE generation technologies, as well as promising technologies under development; (2) evaluate the existing DE industry, focused on producers of each major viable technology; and (3) assess market potential for DE generation technologies over a 5-year period, from 2008 through 2013.
 
REASONS FOR COMPLETING THIS STUDY

Driven by increased global awareness of energy-related issues, including greenhouse gas (GHG) emissions, climate change, energy cost and security, air and water pollution, and other environmental and economic concerns, worldwide interest in alternative forms of energy production is quickly rising. DE generation represents one of several potential solutions that are being widely implemented to address these issues. In many situations, increased reliance on DE generation sources, including solar, wind, fuel cell, and other technologies, will serve as a key component toward reaching climate change, energy security, and environmental goals of political entities across the globe. This study assesses market opportunities that will facilitate the implementation of DE generation around the world.
 
INTENDED AUDIENCE

We have completed a study of DE generation technologies, along with relevant market and production info, technological descriptions and issues, applications, market factors and potential, and an overview of supporting incentives and regulations in major worldwide markets. Therefore, this study will be of interest to manufacturers of DE generation technologies, distributors, suppliers, and entrepreneurs and entrepreneurial companies interested in entering or expanding into the DE generation sector. It will also be of interest to corporate planners and strategists, infrastructure engineering firms, energy market researchers, and energy/fuel suppliers who are engaged in renewable and alternative energy and fuels production and distribution.

SCOPE OF REPORT AND METHODOLOGY

The scope of this investigation includes all major viable DE generation technologies, and abbreviated assessment of potentially viable/emerging DE generation technologies. BCC analyzes each technology, determines its current market status, examines its impact on future markets, and presents forecasts of growth over the next 5 years. Technological issues including the latest trends are assessed and discussed, as are the current and likely regulatory environment in support of this industry.
 
BCC analyzes the industry on a worldwide basis, from both manufacturing and implementation phases points of view. We examine government roles in support of distributed generation (DG) technologies worldwide, including regulatory support and requirements, feed in tariffs, and promotional incentives for various DG technologies, as relevant and available. We provide a review of the most relevant DG technologies, discuss recent trends in capacity installation and unit sales, and provide industry overviews and market assessments for each DG technology.
 
INFORMATION SOURCES

Both primary and secondary research methods were used in preparing this report. BCC surveyed over 150 companies to obtain the data for this study. Included were manufactures of DE hardware, hardware distributors, and selected industrial products. We also spoke with users of these technologies in a variety of locales worldwide. Additionally, we compiled data from current financial and trade information and government sources.
 
ANALYST CREDENTIALS

Robert Eckard has over a decade of experience working in the energy and environmental industries. Currently pursuing a Ph.D. in water and energy resources at the University of California, Davis, Robert also runs a small industry research and technical consulting company, with an emphasis on energy/water/environmental sectors. Robert has provided economic analysis market assessments, environmental analysis, and technical water and energy reports to state and local governments, other consultants, and private companies and individuals throughout the U.S., Australia, and Singapore. Robert takes pride in preparing the highest quality research and documentation, and is happy to be supporting BCC Research in its present endeavor to assess worldwide DE generation markets