Report Examines How DER Is Changing the Energy Landscape
- Editor's Note: The following is reprinted with permission from Navigant Research's recently published report, DER Management Technologies.
The fast growth of distributed energy resources (DER) is one of the most disruptive forces that has affected the power utility industry to date -- and numbers are only increasing. Navigant Research forecasts that installed DER capacity, including distributed generation (DG), energy storage, microgrids, EVs, and demand response (DR), will triple between 2016 and 2025, growing from 124 GW to 373 GW worldwide.
While utility customers motivated by cost and environmental benefits rapidly adopt DER, grid operators are beginning to encounter numerous challenges associated with the variability and changing demand patterns of renewables. These challenges also have significant effects on the aging electrical grid, which was originally designed to support just one-way power flow and was sized according to predictable demand.
Some utilities are reactively trying to address these technical challenges, while others are striving to take on a more proactive approach. Most would like to create value internally and for customers by optimizing grid operations and planning with demand and DER output. A few are even thinking about how to go a step further by enabling new markets to form around this new body of integrated DER.
But for any of this to occur, the grid must be reinforced with more intelligence and higher resolutions of control. Significant investments must be made upfront and in an ongoing manner by utilities to effectively harness the potential benefits of DER and access new markets and business models.
Vendors are approaching this market with many different tools and services to help stakeholders capitalize on DER. This report investigates the market for three DER management technology segments:
- DER analytics: Used for analysis of grid and DER data, to elicit insights on the state of the grid, and for forecasting and planning purposes in a DER-heavy environment
- DER management systems (DERMSs): Used to optimize control of the grid and dispatch of integrated DER
- Virtual power plant (VPP) systems: Used to facilitate the aggregation and dispatch of DER portfolios for capacity and energy services and to interface with energy markets
Global Outlook
The global market for DER management technologies is projected to be driven in the near term by North America. However, this growth is expected to be met by demand in both Europe and Asia Pacific (China excluded) in later years. Latin America and the Middle East & Africa are expected to maintain limited, isolated deployments throughout the forecast period. The DER management technology market is forecast at $194.3 million in 2016, growing at a compound annual growth rate (CAGR) of 30.0% to nearly $2.1 billion in 2025.
Customer comments
No comments were found for Report Examines How DER Is Changing the Energy Landscape. Be the first to comment!