Report: U.S. forecast to deploy 77.3 GW of distributed renewable generation by 2025 - Smart Energy Decisions

Distributed Energy Resources, Regulation, Utilities, Distributed Generation  -  June 24, 2016

Report: U.S. will deploy 77.3 GW of new distributed renewable energy by 2025

Navigant Research expects the U.S. to deploy 77.3 GW of distributed renewable energy between 2016 and 2025, with the majority of that capacity driven by solar. 

Based on the results of a new report examining the U.S. market for distributed renewable energy, with forecasts by state for solar PV, distributed wind, and biogas, Navigant Research analyst Roberto Rodriguez Labastida says the expected deployment is heavily concentrated in a few states; the top 10 markets are expected to deploy 89% of the new capacity. 

"As distributed renewables continue to evolve from their identity as fringe generation resources to become the workhorse of the power sector, it is important that all electricity sector stakeholders execute a new strategy around renewables in order to remain relevant," Rodriguez Labastida said in a June 23 news release about the report

Navigant Research wrote:

Distributed renewable energy technologies have unique characteristics that can act as generation and/or load control on the grid, yet they each represent a dynamic resource that is challenging the industry’s prevailing business models and operating procedures. During the last decade, improvements in regulatory policies and technology cost reductions have accelerated distributed renewable energy deployments in the United States. 

In addition to utility strategy, policies affect the deployment of distributed renewables in the United States, according to the report. Tax credits that help reduce the upfront cost of the investment and renewable energy mandates that increase the value of the electricity produced by renewable sources will likely be phased out, while policies like net metering may be altered to ensure that they reflect the true value of distributed renewable energy.

The study also examines the market issues, including policy and technology trends, related to distributed renewable generation. An executive summary of the report is available for free download on the Navigant Research website.

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