Solar Photovoltaic Market the Leading Light in Global Distributed Power Industry, says GlobalData Analyst
Solar Photovoltaic (PV) tops global distributed power market, with 48% share of total distributed installed capacity---- Despite its 66% share of distributed solar PV capacity, Europe ‘will be supplanted by Asia-Pacific as the market leader by 2019,' says analyst
LONDON, UK (GlobalData), 15 July 2014 - The distributed power generation market is set to undergo substantial expansion over the coming years, with its contribution to the global installed power capacity more than doubling from 190 Gigawatts (GW) in 2013 to approximately 389 GW by 2019, says an analyst with research and consulting firm GlobalData.
Having achieved approximately 92 GW of installed power capacity up to the end of 2013, the solar Photovoltaic (PV) sector holds the top position in the global distributed power market segment, with a 48% share of the total distributed installed capacity. It is followed by Combined Heat and Power and wind power, with 38% and 13% shares, respectively.
Ankit Mathur, GlobalData's Project Manager for Alternative Energy, says: "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.
"However, following the 2009 financial crisis and recent budgetary constraints, most of the European PV markets have retracted their support by reducing such incentives. It is therefore expected that Europe will be supplanted by Asia-Pacific (APAC) as the market leader by 2019."
GlobalData forecasts that the APAC region will contribute 89 GW to the global distributed PV cumulative installed capacity by the end of 2019, driven primarily by China and Japan's expanding markets.
Mathur continues: "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."
Approximately $74.8 billion was invested in the global solar PV distributed power market in 2013, accounting for a massive 77% share of the total investments that year. Overall, GlobalData states that the bankroll in the global distributed power market is expected to increase to more than $114 billion by 2019.