REPORT SCOPE
INTRODUCTION
STUDY GOALS AND OBJECTIVES
BCC’s goal in conducting this study was to assess and describe the current status of the worldwide distributed energy generation (DG) industry for all major technologies, and to assess the potential growth of that industry. More specifically, the study included the following objectives: (1) summarize existing DG technologies as well as promising technologies under development; (2) evaluate the existing DE industry, focusing on producers of each major viable technology; and (3) assess market potential for DE generation technologies over a 5-year period, from 2010 through 2015. This report also serves to update a previous report on the same topic that provided projections through 2013 that was completed prior to the global economic downturn that began in 2009.
REASONS FOR COMPLETING THIS STUDY
Worldwide interest in alternative forms of energy production is quickly rising, driven by increased global awareness of energy-related issues including greenhouse gas (GHG) emissions, climate change, energy cost and security, air and water pollution, and other environmental and economic concerns. DG represents one of several potential solutions that are being widely implemented to address these issues. In many situations, increased reliance on DG sources including solar, wind, fuel cell, and other technologies will serve as a key component toward reaching climate change, energy security, and environmental goals of political entities around the globe. This study assesses market opportunities that will facilitate the implementation of DG around the world.
INTENDED AUDIENCE
We have completed a study of DG technologies along with relevant market and production information, technological descriptions and issues, applications, market factors and potential, and an overview of supporting incentives and regulations in major worldwide markets. Therefore, this study is of interest to manufacturers of DG technologies, distributors, suppliers, and entrepreneurs and entrepreneurial companies interested in entering or expanding into the DG sector. It will also be of interest to corporate planners and strategists, infrastructure engineering firms, energy market researchers, and energy/fuel suppliers who are engaged in renewable and alternative energy and fuels production and distribution.
SCOPE OF REPORT
The scope of this investigation includes all major viable DG technologies as well as abbreviated assessment of potentially viable emerging DG technologies. BCC analyzes each technology, determines its current market status, examines its impact on future markets, and presents forecasts of growth over the ensuing 5 years. Technological issues including the latest trends are assessed and discussed, as is the current and likely ongoing regulatory environment in support of this industry.
BCC analyzes the industry on a worldwide basis from both a manufacturing and an implementation point of view. We examine government roles in support of DG technologies worldwide, including regulatory support and requirements, feed-in tariffs, and promotional incentives for various DG technologies as relevant and available. We provide a review of the most relevant DG technologies, discuss recent trends in capacity installation and unit sales, and provide industry overviews and market assessments for each DG technology.
WORLDWIDE MARKETS
The following table provides a review of the major worldwide markets that were assessed in support of this study.
TABLE A
LIST OF GLOBAL MARKETS CONSIDERED IN THIS STUDY
| Market |
Countries Included |
| North America |
United States and Canada |
| South America |
All South American countries |
| Europe |
European Union plus Western Russia |
| Asia and Australia |
China, Japan, Korea, Southeast Asia, Singapore, Eastern Russia, eastern former Soviet Republics, Australia |
Source: BCC Research
METHODOLOGY
Both primary and secondary research methodologies were used in preparing this report. Background information, including reviews of each DG technology and its implementation status, were collected from government and industry sources, primarily those located in the United States and Europe. Specific citations and references are provided as needed to support this study, and website links to government and industry studies, white papers, and other relevant information is provided whenever available.
BCC’s research of present and historic market trends was conducted primarily via phone interviews and internet research, typically relying on personal interviews and internal or publicly available company data that were provided to BCC research, and on annual documentation of sales within each sector as relevant to a particular DG technology. Based on the results of our surveys, we analyzed the potential applications for each technology, and forecast sales through 2015.
Market sizes and installed capacity figures were calculated based on data obtained from surveyed parties. In some cases when available, data regarding the total percentage of market share that was represented by the surveyed parties was used to provide an estimate of the entire market size and/or installed capacity. Additionally, when available, the data provided in this report were compared against other industry data (these were available for solar and, to a limited extent, for small wind and fuel cells) to ensure relevance, applicability, and accuracy of the data summarized below.
TABLE B
RESEARCH INFORMATION SOURCES
| Portion of BCC Report |
Information Source |
Primary or Secondary |
| Review of distributed energy and technologies |
Scientific, government, and industry research |
Secondary |
| Regulatory support for distributed generation |
Government documents |
Secondary |
| Industry structure and market overview |
Industry interviews |
Primary |
| Major companies and company profiles |
Industry interviews and published corporate information |
Primary and Secondary |
| Market assessment and projections |
Industry interviews, BCC Research calculations |
Primary, Secondary sources used for benchmarking and validation |
Source: BCC Research
INFORMATION SOURCES
Both primary and secondary research methods were used in preparing this report. BCC surveyed over 110 companies to obtain data for this study. Included were manufactures of DG hardware, hardware distributors, and selected industrial products. We also spoke with users of these technologies in a variety of locales worldwide. Additionally, we compiled data from current financial and trade information and government sources.
ANALYST CREDENTIALS
Robert Eckard has over a decade of experience working in the energy and environmental industries. Currently pursuing a PhD in water and energy resources at the University of California, Davis, Robert also runs a small industry research and technical consulting company with an emphasis on energy/water/environmental sectors. Robert has provided economic analysis market assessments, environmental analysis, and technical water and energy reports to state and local governments, other consultants, and private companies and individuals throughout the U.S., Australia, and Singapore. Robert takes pride in preparing the highest-quality research and documentation, and is happy to be supporting BCC Research in its present endeavor to assess worldwide DG markets.
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DISCLAIMER
The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or its use.
