Dive Brief:
- New research from Navigant finds annual installed capacity in the global distributed generation (DG) market is expected to nearly double from 87.3 GW in 2014 to 165.5 GW in 2023.
- While utilities in the U.S. are struggling with regulators to preserve revenue streams, Navigant points out that distributed generation has been very disruptive in Western Europe, where utilities are losing hundreds of billions of dollars in market capitalization.
- According to Navigant, finding a balance between distributed and traditional generational would enable a more flexible and resilient grid capable of withstanding demand spikes.
Dive Insight:
The utility "death spiral" may well be a real thing.
“Utilities in Western Europe are losing hundreds of billions of dollars in market capitalization as DG reaches higher levels of penetration in leading countries such as Germany, the United Kingdom, and Italy,” said Dexter Gauntlett, senior research analyst with Navigant Research. “The prospect of similar losses by utilities in the United States is prompting a struggle among utilities, the DG industry, and regulators over the future of DG models.”
According Navigant, the worldwide installed capacity of distributed generation is expected to more than double in the next nine years. And over the summer, a Black & Veatch survey found most U.S. electric utilities believe they will see an increase in distributed generation and stagnant load growth over the next 10 years.
