Distributed Energy Resource Management Market Analysis

The global demand for electricity is set to experience significant growth in the coming years, propelled by factors such as population increase, rapid urbanization, expanding infrastructure projects, and improved electricity accessibility. However, the conventional energy sources like coal, petrol, and natural gas, which have long been the pillars of power generation, contribute substantially to carbon emissions. Recognizing the need to address environmental concerns and reduce carbon footprints, stakeholders in the power generation industry are actively shifting their focus toward increasing the proportion of renewable energy sources in the overall power generation mix on a global scale.
Renewable energy sources, including solar, wind, hydro, and biomass, play a crucial role in electricity generation. The escalating worries surrounding carbon emissions and the collective efforts to mitigate them underscore the imperative to augment the share of renewables in the power generation mix. Wind, solar, biomass, and other renewable sources are witnessing a surge in demand due to their capacity to minimize carbon emissions, offering an eco-friendly alternative. In contrast, non-renewable sources such as coal and natural gas release harmful gases and waste during electricity generation.
The growing awareness of environmental safety has become a driving force behind the global surge in renewable energy markets. This momentum is not confined to a particular region; countries worldwide, including India, Germany, Saudi Arabia, and the UAE, are setting ambitious targets to boost the capacity of renewable energy sources in their power generation mixes. For instance, Saudi Arabia aims to generate 60GW of energy from renewables by 2030, and the UAE has set a target to achieve a 50% share of renewable energy in its total energy mix by 2050 through the Energy Strategy 2050 initiative.
Germany has committed to reaching a 40-45% share of renewable energy in its total electricity consumption by 2025. In the United States, the International Renewable Energy Agency (IRENA) predicts that the share of renewable energy in the country's total energy generation capacity will reach 10% by 2030.
The integration of electricity from renewable sources into conventional grid networks is facilitated by Distributed Energy Resource Management Systems (DERMS). DERs, including solar, hydropower, wind, and biomass, contribute to the flexibility of renewable electricity generation. DERMS plays a crucial role in monitoring and optimizing the flow of energy generated from renewable sources into the distribution grid network. It enhances control and integration of renewable energy sources, ensuring grid stability.
As the demand for renewable energy continues to rise, the utilization of DERMS is expected to increase. Consequently, the global Distributed Energy Resource Management System market is poised for growth during the forecast period, driven by the escalating share of renewable energy in the power generation mix.