Published On : 13 Feb 2019
The global distributed generation market is expanding at a notable pace over the recent past. First and foremost, increasing efforts to harness renewable sources of energy is boosting the deployment of distributed generation system. Worldwide, environmental agencies and government bodies are supporting the production of clean energy in a bid to safeguard the environment.
Distributed generation refers to the practice of using a number of different technologies to generate electricity in proximity to the site where it will be used. Solar panels, wind power, and heat power are some combination of renewable energy that are used in a distributed generation ecosystem.
The configuration of a distributed generation unit depends on its end use. A distributed generation may either serve a single structure, such as a business or home, or it may be connected to a microgrid, which is further connected to a larger electricity network.
Physical Advantages and Reliable Energy boosts uptake of Distributed Generation Unit
A distributed generation system offers a number of advantages, thereby boosting the distributed generation market. A distributed generation unit when connected to an electric company’s lower voltage distribution network helps support distribution of clean and reliable energy to customers other than subscribers of the utility. It also helps reduce energy loses during transmission and distribution.
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In the residential sector, a distributed generation unit generally comprises small wind turbines, solar photovoltaic panels, natural-gas-powered fuel cells, and emergency backup generators that are usually powered by gasoline or diesel.
On the other hand, distributed generation unit for industrial and commercial energy needs comprise combined heat and power systems, wind, biomass combustion or cofiring, fuel cells powered by biomass or natural gas, hydropower, municipal solid waste incineration, and reciprocating combustion engines, which includes backup generators fueled by oil.
Due to rampant industrialization and urbanization in both developing and developed countries, the demand for energy is ever-increasing. Governments are seeking alternate sources of energy to complement energy produced using conventional sources. Development of off-grid locations that are supported by mainstream energy distribution infrastructure is further aiding the growth of distributed generation market.
On the flip side, reluctance of energy companies and government agencies to invest in distributed generation ecosystem is slowing the growth of distributed generation market.
Nevertheless, advantages of compact size, low unit cost of production, and dependable thermal output are driving the installation of distributed generation systems. Flexibility of use of novel start-up technologies is further boosting the installation of distribution generators, thereby benefitting the distributed generators market.
Among key technologies in the distributed generation market, combined heat and power (CH) is a prominent one. Due to attributes of flexibility, better efficiency, and low levels of carbon emissions, CH is gaining popularity. Asia Pacific holds immense potential to emerge as a key region in the global distributed generation market due to rapid economic development.
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