SANTA CLARA, Calif., July 5, 2021
The UAE and Saudi Arabia will lead the sector, while Oman will emerge as the fastest-growing market, shares Frost & Sullivan
SANTA CLARA, Calif., July 5, 2021 /PRNewswire/ -- Frost & Sullivan's recent analysis on the distributed energy market in the Gulf Cooperation Council (GCC) finds that it is gathering momentum with declining technology costs, resource availability, and favorable policies. This encourages customers to self-generate electricity through distributed renewable sources and sell excess electricity back to the grid, transforming customers into prosumers (an individual who consumes as well as produces goods or services).
The region's total distributed energy market, which encompasses distributed solar photovoltaic (PV), distributed wind power, hybrid systems, diesel gensets, and gas gensets, is estimated to garner a revenue of $602 million by the end of 2021 from $480 million in 2020, registering strong double-digit growth at a compound annual growth rate (CAGR) of 25.4%. This will be driven by the recovery in the diesel gensets market along with strong growth in rooftop solar PV and hybrid power systems. The UAE and Saudi Arabia will lead the market for distributed energy, with Oman set to emerge as the fastest-growing market in the region.
For further information on this analysis, Distributed Energy Rejuvenating the Power Sector in the GCC through Innovation and Efficiency, 2021, please visit: http://frost.ly/5vj.
"As utility-scale and distributed renewable resources become a crucial aspect of the region's decarbonization mandates, utilities will invest in grid modernization solutions, digital platforms, software solutions, and systems associated with asset performance, modeling, and predictive analysis," said Neeraj Sanjay Mense, Energy & Environment Industry Analyst at Frost & Sullivan. "Additionally, distributed solar PV will drive the market for distributed energy resources (DERs) as an increasingly wider customer base is expected to adopt rooftop solutions, buoyed by the regulatory mechanisms supporting such installations."
Mense added, "Business models have evolved, and customers would prefer operation and output-based operating expenses (OPEX) contracts that include maintenance, performance guarantees, and availability, especially across residential, commercial, and industrial consumers. Further, behind-the-meter energy storage is set to become a game-changer for DERs in the region as it enhances the value proposition of the DERs and enables revenue stacking."
The rise in prosumerism will present tremendous growth opportunities to the stakeholders, which include:
Distributed Energy Rejuvenating the Power Sector in the GCC through Innovation and Efficiency, 2021 is the latest addition to Frost & Sullivan's Energy & Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Distributed Energy Rejuvenating the Power Sector in the GCC through Innovation and Efficiency, 2021