3Q 2020

Customer Demand Drives New DER Business Models

Global DER Deployment Insights

Despite restraints posed by the recent pandemic, deployments of distributed energy resources (DER) will continue to rise. Declining technology costs and project economics coupled with an increasing focus on clean energy investments around the world will foster new investment opportunities in this industry. However, at the center of the decentralized energy ecosystem is the consumer fostering new business models and aggregation strategies. Utilities and energy providers need to structure and increase transparency in the way energy is generated, produced, and consumed to broaden access across potential customers. 

According to Guidehouse Insights’ estimates, new global DER capacity deployments—including distributed generation (DG), distributed energy storage, plug-in EV charging load, demand response (DR), and energy efficiency—will continue to exceed the deployment of new centralized generation capacity growth. However, DER deployments will require extensive cooperation between key stakeholders—the utility, OEMs, and regulators—to realize their ideal market potential. 

This report covers 14 DER technologies grouped across four distinct parts of the value chain that generate, manage, and consume electricity. Despite their distinct characteristics, all of these technologies usually operate behind-the-meter (BTM) at customer facilities. In some cases, the technologies are owned and operated by actors outside traditional utilities, such as the technology owner or third-party service providers and aggregators.

Pages 14
Tables | Charts | Figures 4
  • What are the key drivers for different DER technologies around the world?
  • How are DER technologies evolving with respect to changing consumer demands?
  • What are the major DER developments in each global region to date?
  • How will DER deployments displace traditional, centralized generation around the world?
  • Solar developers, installers, and operators
  • Genset and microturbine vendors
  • Fuel cell vendors
  • Microgrid vendors
  • EV charging vendors and service providers
  • Energy suppliers, utilities, and grid operators
  • Energy service companies (ESCOs)
  • Government agencies
  • Investor community



Executive Summary


DER Value Chain

Market Inflection Trends

Market Drivers and Barriers

Market Forecast

Regional Market Overview

Key Recommendations




  • DER Deployment: Industry Growth Potential, World Markets
  • Cumulative DER Power Capacity by Technology, World Markets: 2020-2030
  • Annual DER vs. Annual Central Generation Capacity Additions, World Markets: 2020-2030
  • Global DER Annual Capacity Deployment by Application, Regional Market Shares, World Markets: 2020 and 2030