Embedded Power Generation Market Size, Share, and Industry Analysis By Type (Cogeneration, Trigeneration, and Others), By Application (Solar, Battery Storage, Gas Turbines, Fuel Generator, and Others), and Regional Forecast till 2032

The global embedded power generation market is prospering as it has a wide range of applications in the renewable energy sector. The technology is deployed for exploiting the possibilities of integrating the existing renewable energy sources to fulfil the demand for electricity and other kinds of energy sources. It is a system of storage plants or electricity generation linked to a distribution network or electricity rather than a transmission network.

• In Europe, 52% of the energy produced is used within the same environment where it is produced. This shows the rising demand for embedded power generation systems in leading sectors.

Embedded Power Generation Market Driver

Rise in Investments in Distributed Energy Sources to Drive Industry Growth

Investments in distributed energy resources are encouraged due to the need to maintain the grid and be resilient to natural disasters and grid failures. Taken together, these forces demonstrate the transformative potential of renewable energy generation to reshape the future energy environment to be more efficient and sustainable.

• In August 2024, the Development Bank of South Africa planned to double the size of its program to finance renewable energy plants and continue plans to help private investment in the renewable energy grid of South Africa. The Sustainable Generation Investment Scheme, which helps finance installations capable of generating 700MW of electricity, aims to support installations generating a total of 1,400 MW in 18 months.

Embedded Power Generation Market Restraint

Lack of Government Incentives May Affect Industry Growth

As compared to the renewable energy sector, the incentives given to embedded generation systems is lacking in many countries as it is used in cement, coal, steel, and oil industries as well as for achieving the targets set for production. This applies to the lack of incentives for the global market and strict government regulations to control carbon emissions.

• In February 2024, the South African minister announced two key tax policy initiatives in the budget that will help explain some aspects of the budget, which the industry will welcome. Rental income and a residential property fall into the "missing middle," so no taxpayers qualify for the tax incentive.

Embedded Power Generation Market Opportunity

Integration of Renewable Energy Sources in Embedded Power Generation

The market for embedded energy generation is rapidly changing to include renewable energy sources. Advances in technology have made it possible to integrate electric, solar, and wind systems into energy solutions. The increasing focus on sustainability and reducing the carbon footprint and the decreasing costs of renewable energy technology are the factors driving this trend.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Countries
• Latest Technological Advancement
• Insight on Regulatory Landscape
• Porters Five Forces Analysis
• Impact of COVID-19 on the market 

Analysis by Type

Based on type, the market is divided into cogeneration, trigeneration, and others.

Cogeneration is the synchronized production of electricity and heat for the same type of fuel. Combined heat and power plants are more proficient than traditional production methods that produce electricity and heat separately. The overall efficiency of conventional systems is around 60%. The overall efficiency of the synchronous generation system is between 87% and 92%. Natural gas, liquefied natural gas, and biomass are the types of fuel used in CHP plants.

Analysis by Application

On the basis of application, the market is subdivided into solar, battery storage, gas turbines, fuel generator, and others.

Embedded systems have proven their ability to solve technical problems, such as electric vehicles, charging stations, healthcare, factory machines, and medical devices. Much of the current research on solar energy systems has been based on the use and integration of new methods (such as machine learning, deep learning, and IoT) and technologies (such as sensors, smartphones, SoCs, and configurable devices) to solve specific problems such as monitoring, error analysis, optimization, and control.

• Nigeria's Kano Electricity Distribution Company has unveiled its plan to provide 24-hour electricity to Kano, Katsina, and Jigawa states with renewable energy grids of solar. This has been recorded as ambitious plans have been put in place to build up to 200 megawatts of energy in 100 small grids and domestic generation.

Regional Analysis

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Based on region, the market has been studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

In North America, embedded power generation systems are innovatively used in hydrogen power generation and renewable energy sources. Many niche groups are working in the field of integration of hydrogen and electrolysis power production with simultaneous use in other manufacturing units.

• In the U.S. military, the ability to deploy electric motors on ground vehicle platforms is a growing need as high power is often required to navigate high loads- such as a bench and a strike-to-the-point system in the shortest possible time. Therefore, embedded power generation systems are being used.

The Europe market is planning to deploy solar-based photovoltaic (PV) power to meet its energy challenges using embedded power generation methods and to meet climate ambitions, achieve a high level of energy, and eliminate the energy gap that is less dependent on others.

• As part of the EU's "solar energy strategy," the region has announced 750 GWDC of installed solar capacity by 2030, up from 224 GW of installed capacity by 2022. This represents a significant increase in enrollments each year. It will increase from 26 GW in 2021 to 70 GW per year in the second half of this decade. Germany alone plans to install 215 GW by 2030, adding 160 GW of new capacity to the current 58 GW, nearly quadrupling the market.

Recent economic growth in East Asia Summit (EAS) countries, especially emerging countries, has led to a rapid increase in energy demand. ASEAN's primary electricity supply will nearly triple from 592 Mtoe in 2013 to 1697 Mtoe in 2040. This pattern of increasing energy demand threatens energy security, especially energy supply availability, reasonable prices, and renewable sources of energy supply. The idea of ​​cross-border grids is promoted in the ASEAN Power Grid (APG) using embedded power generation technology.

Through investments in solar and wind power, grid connections, and hydrogen, the Middle East's energy transition is progressing smoothly. This transition is necessary for large countries such as Saudi Arabia and Egypt, as their growing economies and populations have significantly increased the domestic electricity consumption.

• By 2030, Morocco, Tunisia, and Algeria aim to have 52% (power consumption), 35% (power generation), and 27% (electricity) from renewable sources, while Egypt followed by 42% with the use of embedded power generation. The countries of the Persian Gulf have similar goals, and Saudi Arabia's goal of producing 50% of its electricity by 2030 is important due to its position as the largest economy and the most powerful consumer in the region.

Latin America has steady growth in the market with a lack of technologies and investments, particularly in the renewable energy sector.

Key Players Covered

The global embedded power generation market is fragmented, with the presence of a large number of group and standalone providers.

The report includes the profiles of the following key players:

• Essar Energy (Mauritius)
• General Electric (U.S.)
• Jindal Steel Power (India)
• Wartsila (Finland)
• Reliance Industries (India)
• Equans (U.K.)
• Siemens AG (Germany)
• Eskom Holdings SOC Ltd (South Africa)
• Welspun Group (India)
• Ultratech Cement (India)
• Babcock Power (U.S.)
• Vedanta Resources (India)

Key Industry Developments

• In September 2023, Vedanta Limited announced plans to demerger its business units into "pure play" companies to unlock value and attract significant capital to grow and grow each business. Vedanta is committed to best-in-class ESG practices with a focus on precious metals for the transition to a green economy with production system inclusion of embedded power generation.
• In January 2021, Wärtsilä announced that it would provide grid balancing and energy storage services to the Shetland Islands in Scotland by deploying its 8MW/6MWh energy storage system at Lerwick Power Station. Wärtsilä Engineering Group will deploy an 8 MW/6 MWh energy storage system on the Shetland Islands in Scotland.