Global Revenue from DER Capacity Is Expected to Experience a Compound Annual Growth Rate of Nearly 16%
Annual revenue is expected to grow from $173 billion in 2019 to $650 billion in 2028
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. Click to tweet: According to a new report from Navigant Research, 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.
The report, Global DER Overview, provides a quantitative analysis of the global market for DER technologies and assesses the major market developments, regulatory environment, emerging business models, and technology trends. Technologies covered include distributed generation, demand response (DR), DER management systems (DERMSs), EV charging, distributed energy storage systems (DESSs), and energy efficiency. Installed capacity and revenue forecasts in the C&I and residential segments extend through 2028. An Executive Summary of the report is available for free download on the Navigant Research website.
*The information contained in this press release concerning the report, Global DER Overview, is a summary and reflects Navigant 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 Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.