News Article
Solar Drives Renewable Markets
Renewable distributed energy generation markets to reach $60.6 billion by 2013
Global system revenues for sub-utility scale Renewable Distributed Energy Generation (RDEG) grew at a breakneck pace between 2007 and 2008, rising 76% to an estimated $29.9 billion at the end of 2008, according to a new report from Pike Research. The cleantech market research firm forecasts that the RDEG market will continue strong growth in the coming years, more than doubling in value to $60.6 billion by 2013.
Increasing numbers of countries and regions of the world have committed to reduce greenhouse gas emissions and diversity energy resources to include more renewable sources. Meanwhile, the world's electricity generation is expected to increase nearly two-fold by 2030 from 2007 levels. The traditional electricity grid's centralized power generation model is very inefficient and limited. In most industrialized countries, the overall generation efficiency averages 30-35% by the time electricity reaches the customer and the electricity grid is getting more and more congested. Further, it is estimated that 33% of the global population lives without power today.
One of the key solutions to these challenges lies in Renewable Distributed Energy Generation. RDEG technologies are comprised of three principal technologies: photovoltaic, small wind, and fuell cells, and are often used in concert with emerging energy storage technologies. RDEG technologies generate power at the point of consumption, avoiding costly and inefficient transmission and distribution. RDEG technologies generate electricity with few if any emissions.
“Renewable distributed energy generation is a sector dominated by small solar energy installations,” says industry analyst David Link. “Solar represents approximately 98% of the world market, with small wind power and stationary fuel cells each accounting for about 1%, a mix that we expect to remain constant during the next five years.”
In each country where RDEG technologies have established a foothold, the market is heavily reliant upon government subsidies, most often in the form of feed-in tariffs for solar installations. However, says Link, this reliance will subside in the long term as system installed prices come down, and Pike Research forecasts that these costs will decline at a compound annual rate of -6% between 2008 and 2013. “Dependence on solar energy subsidies will taper off in Europe during the next 3-5 years,” comments Link, “though we expect that horizon to be somewhat further in the US, approximately 5-10 years away.”
Pike Research's study, “Renewable Distributed Energy Generation”, provides a comprehensive overview of the opportunities and challenges associated with deploying RDEG technologies, including solar photovoltaics, small wind, and stationary fuel cells, to meet the world's increasing demand for electricity. The report includes an examination of key market drivers over the coming years, analysis of cost factors for each technology, and detailed market forecasts.
Increasing numbers of countries and regions of the world have committed to reduce greenhouse gas emissions and diversity energy resources to include more renewable sources. Meanwhile, the world's electricity generation is expected to increase nearly two-fold by 2030 from 2007 levels. The traditional electricity grid's centralized power generation model is very inefficient and limited. In most industrialized countries, the overall generation efficiency averages 30-35% by the time electricity reaches the customer and the electricity grid is getting more and more congested. Further, it is estimated that 33% of the global population lives without power today.
One of the key solutions to these challenges lies in Renewable Distributed Energy Generation. RDEG technologies are comprised of three principal technologies: photovoltaic, small wind, and fuell cells, and are often used in concert with emerging energy storage technologies. RDEG technologies generate power at the point of consumption, avoiding costly and inefficient transmission and distribution. RDEG technologies generate electricity with few if any emissions.
“Renewable distributed energy generation is a sector dominated by small solar energy installations,” says industry analyst David Link. “Solar represents approximately 98% of the world market, with small wind power and stationary fuel cells each accounting for about 1%, a mix that we expect to remain constant during the next five years.”
In each country where RDEG technologies have established a foothold, the market is heavily reliant upon government subsidies, most often in the form of feed-in tariffs for solar installations. However, says Link, this reliance will subside in the long term as system installed prices come down, and Pike Research forecasts that these costs will decline at a compound annual rate of -6% between 2008 and 2013. “Dependence on solar energy subsidies will taper off in Europe during the next 3-5 years,” comments Link, “though we expect that horizon to be somewhat further in the US, approximately 5-10 years away.”
Pike Research's study, “Renewable Distributed Energy Generation”, provides a comprehensive overview of the opportunities and challenges associated with deploying RDEG technologies, including solar photovoltaics, small wind, and stationary fuel cells, to meet the world's increasing demand for electricity. The report includes an examination of key market drivers over the coming years, analysis of cost factors for each technology, and detailed market forecasts.
