Asia-Pacific Distributed Power Generation Market - Growth, Trends, and Forecast (2020-2025)

The market is segmented by Technology (Solar PV, Wind, Combined Heat and Power (CHP), and Other Technologies), and Geography (China, India, Japan and Rest of Asia-Pacific)

Market Snapshot

Study Period:

2018-2025

Base Year:

2019

CAGR:

10 %

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Market Overview

The Asia-Pacific distributed power generation market is expected to grow at a CAGR of more than 10% during the forecast period of 2020 – 2025. Factors such as rising environmental concerns and government policies for incentives and tax benefits for solar panel installation, high cost of grid expansion are expected to be major drivers driving the market. Also, advancement in technology leading to solar panel manufacturing cost reduction and increase in efficiency have been a major factor for the growth of the Asia-Pacific distributed power generation market. However, recent cuts in subsidies for solar power generation in China have slightly hampered the growth of the market.

  • Solar PV sector is expected to witness significant growth in the forecast period, owing to factors like increasing shift towards renewable energy for energy generation, lack of efficient and reliable central grids, and its favorable economic factors.
  • Commercial and industrial sectors are showing a growing interest in distributed power generation, due to various economical benefits and constant source of energy to eliminate downtimes and equipment damage due to voltage fluctuations in conventional power grids. This have created a huge opportunity for distributed power generation market in the region.
  • China is expected to dominate the market, over rising environmental concerns and economical benefits of domestic distributed power generation. The country accounts for over 30% of global solar energy generation, amounting to 177.5 Terawatt-hours in 2018.

Scope of the report

The Asia-Pacific distributed power generation market report include:

Technology
Solar PV
Wind
Combined Heat and Power (CHP)
Other Technologies
Geography
China
India
Japan
Rest of Asia-Pacific

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Key Market Trends

Solar PV Based Distributed Power Generation to Witness Significant Growth

  • Solar PV has dominated the market in the past and is expected to do so in the forecast period too. The sector is the most popular form of distributed power generation due to factors like relatively low installation cost, drop in prices of solar panel manufacturing, and government subsidies.
  • Increasing demand for clean energy is one of the primary drivers for the distributed solar power generation market in the region. Distributed solar PV capacity in the region is expected to increase by over 47 GW by 2024, while commercial and industrial solar PV capacity is expected to increase by over 166.2 GW by 2024.
  • Rooftop solar offers the benefits of modern electricity services to households that had no access to electricity, reducing electricity costs on islands and in other remote locations that are dependent on oil-fired generation, as well as enabling residents and small businesses to generate their own electricity.
  • Commercial and industrial systems remain the largest growth segment because they are usually more inexpensive and have a relatively stable load profile during the day that can enable larger savings on electricity bills, depending on the policy scheme in place.
  • Therefore, the aforementioned factors are expected to drive the market in forecast period.

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China to Dominate the Market

  • China has dominated the distributed power generation market in 2018 in the region and is expected to continue its dominance in the coming years as well. The country holds vast potential for the expansion of distributed energy systems (DES), notably in the form of off-grid and residential solar. Inefficiencies in the power grid infrastructure, power supply shortages, and the scalability of decentralized technology pave way for the deployment in the country.
  • As of 2018, distributed solar PV accounts for over 27% of China’s total solar PV installed capacity. In 2017 China generated around 13.7 TWh of electricity, which is estimated to be enough to meet all energy requirements of all residential consumers of Beijing for 7.5 months.
  • The distributed solar power capacity of China reached 53.41 GW after the first quarter of 2019, in which around 2.8 GW was added.
  • In 2017, the National Energy Administration and National Development and Reform Commission of China introduced an initiative which provided an opportunity to expand distributed energy resources in the country. The Chinese government continues to draft and implement legislation supporting distributed energy resources (DERs) integration and competition within the segment.
  • Distributed wind energy is also on the rise in the country, with a number of projects being awarded to companies like Vestas. The distributed wind power in the country is expected to see an average of 1.5 GW in annual addition in installed capacity until 2027.

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Competitive Landscape

The Asia-Pacific distributed power generation market is fragmented. Some of the major players in this market include are Caterpillar Inc., Total SA, Seimens AG, Schneider Electric SE, Trina Solar Limited, among others.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Installed Capacity and Forecast in GW, till 2025

    3. 4.3 Recent Trends and Developments

    4. 4.4 Market Dynamics

      1. 4.4.1 Drivers

      2. 4.4.2 Restraints

    5. 4.5 Supply Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Consumers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitutes Products and Services

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Technology

      1. 5.1.1 Solar PV

      2. 5.1.2 Wind

      3. 5.1.3 Combined Heat and Power (CHP)

      4. 5.1.4 Other Technologies

    2. 5.2 Geography

      1. 5.2.1 China

      2. 5.2.2 India

      3. 5.2.3 Japan

      4. 5.2.4 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Total SA

      2. 6.3.2 Caterpillar Inc.

      3. 6.3.3 Ballard Power Systems Inc.

      4. 6.3.4 Total SA

      5. 6.3.5 Seimens AG

      6. 6.3.6 Toshiba Fuel Cell Power Systems Corporation

      7. 6.3.7 Trina Solar Limited

      8. 6.3.8 Capstone Turbine Corporation

      9. 6.3.9 Cummins Inc.

      10. 6.3.10 Vestas Wind Systems A/S

      11. 6.3.11 Canadian Solar Inc.

      12. 6.3.12 Schneider Electric SE

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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