2Q 2023

Natural Gas Distributed Generation: Technological and Regional Trends Affecting Market Dynamics

Natural Gas Distributed Generation Forecast

The past 2 years have been turbulent for the natural gas (NG) industry and, by extension, the NG distributed generation (NGDG) industry. As a result of the war in Ukraine, NG prices peaked sharply, driving a wave of demand destruction across Europe, Asia, and Africa. In Europe, for example, prices in August 2022 peaked at 1,000% compared with the past 10 years.

While the worst fears of winter NG shortages did not materialize in 2022/23 and prices have come down from their peak, the market remains jittery, with countries from European Union member states to South Korea implementing policies to wean themselves off NG.

Short-term supply shocks aside, the NGDG market is expected to grow moderately over the next 10 years, except in Europe, where growth has almost flatlined. Asian Pacific countries such as China and India will be the fastest-growing markets for NGDG in the next 10 years, driven by growing economies and the need to decarbonize dirty energy systems, while growth in North America, and particularly the US, will be driven by resiliency goals and the need for backup power as the pace and intensity of climate events increase.

This Guidehouse Insights white paper examines the different NGDG technologies and their use cases, offers market forecasts for the next 10 years (2023-2032), and thoroughly examines the NGDG market on a regional basis before making conclusions and recommendations.

Pages 21

Tables | Charts | Figures 13

Key Questions Addressed

What are the main NGDG technologies?
What are the main global trends in the NG industry?
How has the war in Ukraine affected the NG industry?
Where are the areas of high growth for distributed NG?
What are the drivers and barriers to the implementation of distributed NG resources?

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