By 2019, solar photovoltaic sector will be driving the growth in distributed power generation capacity globally, says a new study. Also, within five years from now, the distributed power market that amounted to 190 GW globally in 2013 will almost double and reach up to 389 GW, adds the report by GlobalData Analyst.
Distributed power generation refers to electricity that is generated from small energy sources. Solar energy is leading this market, leading to lower environmental impacts as compared to the energy generated by using fossil fuels.
In 2013, with 92 GW or 48 per cent share of installed power capacity in global market, valued at US $74.8 billion, the solar PV sector held the top position in the global distributed power market segment. It is followed by combined heat and power and wind power, with 38 per cent and 13 per cent shares, respectively, said the analysts.
The study emphasises that by 2019, Europe’s dominance over solar PV sector will diminish as the Asia-Pacific region, including China, expands its reliance on distributed PV energy. By the end of 2019, GlobalData expects distributed PV contribution by Asia-Pacific region to reach 89 GW, driven primarily by expanding markets of China and Japan.
"Due to a number of EU member states that pioneered in offering subsidies and incentives to boost solar PV installations, Europe now holds an impressive 66% share of the world’s distributed solar PV capacity," said GlobalData project manager for alternative energy, Ankit Mathur, as quoted in pv magazine. "These countries' efforts in boosting distributed PV installed capacity will help them to reduce the burden on the grid and avoid transmission losses. It will also allow for rural electrification, which is a significant priority for most governments across the globe," adds Mathur.
Approximately $74.8 billion was invested in the global solar PV distributed power market in 2013. Overall, the global distributed power market is expected to increase to more than $114 billion by 2019.