PCCA Journal|1
st
Quarter 2011
46
Renewable Distributed
Energy Generation
Market Forecasted to
Triple in Size by 2015
T
he global electric power
industry is evolving from
a financial and engineer-
ing model that relies on
large centralized power plants owned
by the utilities to one that is more
diverse—both in sources of generation
and ownership of the generation assets.
Renewable distributed energy generation
(RDEG), which includes both distributed
solar photovoltaics (PV) and small wind
power, is an emerging mode of opera-
tions that is a growing alternative to the
traditional centralized power generation
infrastructure. According to a new report
from Pike Research, the RDEG market
will experience strong growth over the
next several years, with total system
revenues increasing from $50.8 billion in
2009 to $154.7 billion by 2015. During
this period, Pike forecasts that annual
RDEG capacity additions will increase
from 5.9 gigawatts (GW) in 2009 to 15.1
GW in 2015.
“The economics of sub-utility scale
renewable energy continue to improve at
a rapid pace,” said senior analyst Peter
Asmus. “This downward price curve is
fueling demand for distributed solar PV
and small wind systems as an alternative
to centralized power generation. But the
transition to a more distributed system
is no small matter, and it requires the
evolution of policies, technologies, and
business models.”
Asmus said that, while RDEG cur-
rently represents a very small part of
the global electric power generation
capacity—just 0.2 percent—it has the
potential to play a much larger role in
the future. Although Europe and the
United States are the largest markets for
RDEG today, China and India are huge
potential markets. Pike Research antici-
pates that Europe will continue to be
the largest market for RDEG during the
2010-2015 forecast period, but China will
see the largest market growth as the cost
of renewable energy approaches that of
conventional energy.
An executive summary of the report,
“Renewable Distributed Energy Genera-
tion,” is available at www.pikeresearch.
com.
Advertiser Index
A-D Technologies
19
Aevenia, Inc.
25
AmericanWind Energy Association
38
Astec Underground
9
Bethea Tool & Equipment Co., Inc.
34
Condux International
35
DitchWitch
Inside front cover
FMI Corporation
Inside back cover
FS3, Inc.
27 & 41
General Machine Products Co.
33
Grande Truck Center
17
Jameson Corporation
42
John Deere
12
McLaughlin
23
Melfred Borzall, Inc.
15
NESCO, Inc.
4
RWF Bron
37
Sherman & Reilly, Inc.
6
Utility Equipment Leasing Company
3
Vac-Tron Equipment
Back cover
Vermeer Manufacturing
20
Wagner-Smith Equipment Company
28
PCCA Industry Calendar
DCA Annual Convention
March 1 - 6, 2011
El Conquistador Resort
Los Croabas, Puerto Rico
PCCA 66
th
Annual Convention
March 11 - 15, 2011
Ocean Reef Club
Key Largo, Florida
CONEXPO - CON/AGG 2011
March 22 - 26, 2011
Las Vegas Convention Center
Las Vegas, Nevada
NASTT’s 20
th
No Dig Show
March 27 - 31, 2011
Gaylord National
Washington, D.C.
WINDPOWER 2011
May 22 - 25, 2011
Anaheim Convention Center
Anaheim, California
2011 DCA Mid Year Meeting
July 20 - 24, 2011
Woodstock Inn & Resort
Woodstock, Vermont
2011 PCCA Mid-Year Meeting
August 3 - 6, 2011
The Greenbrier
White Sulfer Springs, West Virginia
ICUEE 2011
October 4 - 6, 2011
Kentucky Exposition Center
Louisville, Kentucky
PCCA 67
th
Annual Convention
March 3 - 7, 2012
Hyatt Regency Hill Country
San Antonio, Texas
WINDPOWER 2012
June 3 - 6, 2012
GeorgiaWorld Congress Center
Atlanta, Georgia
News Briefs
Continued from page 19