In a Petroleum Review article, Navigant Research discusses the impact of new distributed energy systems on industry players worldwide
Distributed energy systems (DES) are energy systems installed near consumer sites that can operate independently of the grid. These systems are shifting energy distribution from centralized, unidirectional power generation to a two-way energy flow.
“The proliferation of DES is one of the most disruptive trends to the traditional energy industry for the foreseeable future,” Rodriguez Labastida said.
According to the article, energy companies and utilities are already dealing with a decrease in revenue. Rodriguez Labastida anticipates this decline in traditional revenue will continue due to energy price volatility, sustainability targets because of behind-the-meter DES, and technology-agnostic companies offering solutions across multi-brand investments, propelling the use of DES forward.
While DES is increasing in popularity, Rodriguez Labastida said the biggest challenge for its players will be maintaining constant cost reductions. Companies will need to constantly innovate with technology or face being squeezed out by low margins.