Distributed Energy Resource Management System Market Size, Share and Global By Technology (Solar PV, Wind, Energy Storage, Combined Heat & Power, Others), By Software (Analytics, Management & Control, Virtual Power Plants), By End User (Government & Municipalities, Industrial, Commercial, Residential, Military) and Geography Forecast Till 2026

A small scale unit of power generation that operates locally is called a distributed energy resource, it is also connected to a large power grid at the distribution level. DER management system allows utilities to manage distribution grids with a range of connected distributed energy generation assets. It is the less expensive option for the construction of large, central power plants & high voltage transmission lines. It is fast and also offers consumers the potential of low cost, high service reliability, & energy independence. In addition, the environmental benefit is offered due to the use of renewable distributed energy generation technologies and green power such as wind, geothermal, biomass, and hydroelectric.

On the basis of technology, the distributed energy resource management system market is categorized by solar PV, wind, energy storage, combined heat & power, others. The continuous increase in solar PV installation in the household sector and in commercial buildings is expected to drive the market. The analytics software sub-segment is expected to hold the largest share as it is the intelligence system that provides value to the operators and also keeps track of how particular DER operates.

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The rapid increase in the share of renewable power generation and continuous growing government mandates & policies are the key restraints for the market. In addition, the shift from centralized to distributed generation and the growing number of distributed energy resources are playing a major role in the growth of the market. Decreasing the cost of solar PV and energy storage has also upsurged the market.

The high initial investment is the major hindrance for the distributed energy resource management system market. Depleting fossil fuel coupled with their rising prices impacts the cost of energy generation. In addition, regulatory issues related to different DER and cybersecurity issues associated with the energy sector are one of the key restraints for the market.

Key Players Covered

Some of the major companies that are present in distributed energy resource management system market are ABB Ltd., Autogrid Systems, Inc., AGL Energy, Siemens AG, Danfoss Group, ENGIE North America Inc., Mitsubishi Electrical Co, Ltd., Open Access Technology International, Inc., Fuji Electric Holdings, General Electric, Doosan Gridtech, Inc., Emerson Electric Co., Spirae, Inc., Blue Pillar, Inc., Sunverge Energy, Inc, Schneider Electric, Enbala Power Networks, Inc., Rockwell Automation, and Yaskawa Electric Corporation.

SEGMENTATION 

Regional Analysis

The distributed energy resource management system market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America market is a dominant player in the DER market due to an increase in demand for the advanced security system, energy and power generation, supportive government regulations, and increasing adoption of IoT (internet of things) and related services. Europe is expected to contribute to development for the distributed energy resource management system market as energy is consumed by different sectors of the economy: households (i.e. energy consumed in the residential sector), transport industry, services (including commercial and public services) and agriculture & forestry. Asia-Pacific is expected to expand at a faster rate due to growth in hydropower and an exponential rate of growth in wind and solar energy are highly consumed across residential, industrial and manufacturing sectors. In addition, developing economies such as India and China are inviting global players to enter their market, which will help in the growth of the overall market. The GCC region has significant potential for renewable energy, especially for the generation of solar photovoltaic (PV). The United Arab Emirates (UAE) hosts nearly 79 percent of the GCC's installed solar photovoltaic capability and has attracted some low-cost solar photovoltaic projects. While the concentrated solar power (CSP) resource base in the arid region is less ideal.

Key Industry Developments

• In May 2019, ENGIE North America Inc. announced the acquisition of Genbright LLC of Hingham, MA, a company pioneering the integration of distributed energy resources into wholesale electricity markets. The acquisition enables full integration of wholesale market bidding, scheduling, and dispatch optimization capabilities into ENGIE Storage’s Grid Synergy platform.
• In July 2018, The New York Independent System Operator, Inc. (NYISO) announced the selection of three pilot projects to demonstrate the capabilities of Distributed Energy Resources (DERs) and options for their integration into its wholesale markets which will establish a clear path for integrating DERs and help the state to achieve its goals for Reforming the Energy Vision (REV).
• In December 2018, Australia based AGL Energy announced that it has selected Vancouver-based Enbala to provide the cloud-based control and optimization platform for it's Virtual Power Plant (VPP) project which is being built in South Australia.