Distributed Energy Resource Management Market Trends

Centralized power generation involves the large-scale production of electricity at centralized generating stations, with the generated power distributed through an electricity grid to end-users, including industrial, utility, and residential sectors. However, the electricity sector is undergoing a shift from centralized to distributed power generation due to challenges associated with the former, such as air pollution, waste generation, and transmission & distribution (T&D) losses.
Distributed generation, on the other hand, entails on-site or decentralized electricity generation from sources like solar, wind, fuel cells, hydropower, and combined heat & power located near consumers. This technology addresses challenges associated with centralized generation and diminishes reliance on conventional centralized energy sources. Additionally, distributed generation offers benefits such as supplying electricity to remote areas, reducing T&D losses, enhancing power reliability, minimizing the electricity demand-supply gap, and decreasing peak electricity demand.
The Rise of Distributed Power Report by General Electric predicts a substantial annual investment of approximately USD 206 billion in distributed generation installation globally by 2020. Governments worldwide, including those in the US and India, are actively introducing initiatives such as programs, policies, measures, and incentives to foster the development of distributed generation technologies. In India, schemes like the Remote Village Electrification Scheme and Rajiv Gandhi Grameen Vidyutikaran Yojna provide subsidies for rural electrification projects using decentralized distributed generation. In the US, authorities offer initiatives such as corporate tax incentives and rebate programs to encourage distributed generation development, contributing to the growth of these technologies.
This increased adoption of distributed generation systems has led to a surge in demand for Distributed Energy Resource Management Systems (DERMS). DERMS connects, controls, manages, and visualizes distributed generation as a unified entity, often through monitoring and control systems. Consequently, the ongoing shift from centralized to decentralized generation is anticipated to drive the growth of the distributed energy resource management system market. As governments and industries embrace distributed generation for its numerous advantages and environmental considerations, the demand for DERMS is poised for substantial growth in the foreseeable future.