Distributed Energy Resources Set to Flourish in Europe

In an article for Utility Week, Navigant Research details the region’s shift from centralized renewables in order to create flexibility on the grid

Europe, which generates more electricity from renewable sources than any other region, is shifting its focus from centralized renewables to distributed energy resources (DER) that will add flexibility into the grid.

In an article for Utility Week, Roberto Rodriguez Labastida, senior research analyst at Navigant Research, says that technologies like demand response and energy storage, as well as sensors, smart meters, virtual power plants, and energy management systems will begin to play a bigger role in the region’s energy mix.

“Europe is poised to install 29.1GW of new DER capacity in 2017, generating $25.5 billion in revenue,” he said. “In 2026, Europe is expected to install 119.9GW of DER and generate $58.6 billion at an anticipated compound annual growth rate of 17 percent.”

The picture looks similar for the UK, where DER capacity additions are expected to be 6.5 times more than central generation deployments over the next decade.

Rodriguez Labastida says the EU and the UK governments are preparing for changes in the electricity system as evidenced by updated policy and regulations. In industry, players from other energy sectors such as oil and gas, are also recognizing the shift and have been investing in DER businesses and launching new services to customers.

“While the transition to DER will not be easy for organizations in an industry built around a centralized energy model, it is already possible to see the first sprouts of DER investments: a cleaner, cheaper, customer-focused, and far more innovative power sector," he added. “Focusing on creating happy customers through innovative value propositions underpinned by new business models and integrated platforms will be critical for success in the energy transition.”

For more information on this topic, check out Roberto Rodriguez’s recent report, Global DER Deployment Forecast Database.

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