Renewable distributed energy generation such as wind and solar accounts for just 0.2 percent of global electric capacity, but that's about to change, according to Pike Research.
Pike estimates that the renewable distributed energy generation (RDEG) market will triple and become more of a viable alternative to traditional power generation. The RDEG market will see system revenue increase from $50.8 billion in 2009 to $154.7 billion in 2015. That jump equates from 5.9 gigawatts in 2009 to 15.1 gigawatts in 2015.
In other words, renewable energy will still be a small chunk of capacity, but a growing one. Pike estimates that falling prices will accelerate use of renewables, but better business models, policies and technology are still needed.
The hotbeds for RDEG will be Europe and China. India is another potentially large market for renewables. China is the region to watch most closely because renewables have the best chance for cost parity with traditional power there.
This post was originally published on Smartplanet.com