Investment in UK Distributed Power Generation Market to Plummet by 2019, says GlobalData

Investment in UK distributed power generation market to decline from almost $2.5 billion in 2013 to $939 million by 2019 ---- Excessive and overlapping new policies ‘to create chaos in the UK's solar PV distributed power generation market in particular,' says analyst

LONDON, UK (GlobalData), 26 August 2014 - Investment into the UK's distributed power generation market, which comprises wind, solar Photovoltaic (PV) and combined heat and power installed capacity, will witness a significant decline from almost $2.5 billion in 2013 to $939 million by 2019, says research and consulting firm GlobalData.


The company's latest report* states that investment, which will fluctuate annually between 2013 and 2015, will begin declining from 2016 until the end of the forecast period, as a result of various anticipated policy amendments.

These changes include the expiration of the Renewables Obligation policy in March 2017, which will be replaced by Contracts for Difference (CfD) from as early as April 2015. Feed-in Tariffs (FiTs) are also set to expire in March 2021, and are currently subject to degression and corridor limits for each type of distributed power generation technology.

Ankit Mathur, GlobalData's Project Manager for Alternative Energy, says: "We expect these excessive and overlapping policies to create chaos in the UK's solar PV distributed power generation market in particular.

"As part of its solar PV strategy, the UK government aims to boost the small and medium-sized commercial solar PV distributed generation sector by encouraging rooftop installations on government properties, with a target of installing 1 Gigawatt (GW) of capacity by 2020. However, only 75% of this target is likely to be achieved."

While reductions in annual investments into the UK's overall distributed power generation market will impact negatively on the number of annual installations, GlobalData still forecasts moderate growth in the country's cumulative installed distributed power generation capacity.

Mathur states that this capacity is expected to increase from almost 3.7 GW in 2013 to more than 7 GW by 2019.

*Policy Amendments Leave the UK Distributed Power Generation Market in Disarray

Featured Product

SMA America - Introducing the New Sunny Boy 5.0/6.0-US

SMA America - Introducing the New Sunny Boy 5.0/6.0-US

The Sunny Boy 5.0-US / 6.0-US features a wealth of improvements and joins SMA's lineup of field-proven solar technology backed by the world's #1 service team. The world's first Secure Power Supply now delivers up to 2,000 W of opportunity power when the grid goes down and the sun is shining. Installation has never been easier thanks to SMA's Installation Assistant, direct access via smartphone, and integrated DC disconnect. The Sunny Boy's multiple independent input channels, each with SMA's OptiTracâ„¢ Global Peak, mean hundreds of stringing configurations for flexible system design while solving the challenges of complex roofs and shading. The residential PV market is changing rapidly, and we understand that your bottom line matters more than ever. That's why we've designed a superior residential solution that will help you decrease costs throughout all stages of your business model. The Sunny Boy 5.0-US and 6.0-US are once again raising the bar by offering improved performance, enhanced features, and most importantly, cost savings across the entire spectrum of residential installation processes.