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ABI Study Sees Major Global Expansion for DG

Issue 7 and Volume 106.

Global distributed generation capacity will increase from 20,000 MW to nearly 300,000 MW by 2011 according to “Distributed Generation – Global Market Analysis, Technology Assessment and Outlook”, a new study by Allied Business Intelligence (ABI).

“Distributed generation markets have to be reexamined after Enron, the California energy crisis and the uncertainty in the Middle East. Now power quality and reliability issues are proving themselves to be crucial,” said Atakan Ozbek, Director of Energy Research and author of the study. “Our study demonstrates that the need for DG is certain, yet the emerging technology manufacturers and developers and the governments across the globe are two crucial stakeholders that must speed up their rollouts in this decade,” added Ozbek.

One of the key findings in the study is that the incumbents (reciprocating engines and small gas turbines) will keep their dominance through 2005-2006. By 2005, fuel cells will be penetrating commercial markets across the globe starting in North America, Europe, and Japan. The study also shows quality power and industrial power supply markets are expected to see higher growth rates than residential markets. Industrial markets already have started to embrace DG power systems, and they will continue to do so in the foreseeable future. The largest growth potential here will be seen in the small to medium sized industrial markets.

The study analyzes a broad range of DG emerging technologies, from fuel cells to microturbines, to wind turbines.