SubsectorsDG / Off-Grid

  • Distributed generation (DG), led by photovoltaics (PV) & energy storage (ES), is becoming a prominent force in remote areas and frontier markets, driven by:
    • declining PV & ES costs
    • ‘smart’/digital technologies
    • environmental/development concerns (e.g. SDG7)
    • accelerated lending from development/impact financiers
    • emerging business models
  • Pay-as-you-go (PAYG) solar (generation) companies attracted $265m in funding in 2017 (to $819m cumulatively1)
  • Grid-oriented business models2 (mini-/micro-/- edge) have begun to catch-up with PAYG PV; scope exists for a clear leader to emerge
  • The off-grid market is spreading to Asia (SEA, India …) and to larger projects, for the latter proving to be a compelling solution for: commercial and industrial (C&I) and energy access needs; grid balancing & utility tasks; satisfying mines, military and campus requirements
  • Energy/Power majors – facing disruption in their traditional markets – are ambitious in relation to energy access goals in frontier markets as well as actively embracing decentralised technologies and B2B/B2C offerings in their core markets; acquisitions or JVs with start-ups are an integral part of that strategy
  • Large (smart) grid OEMs are expanding their portfolios – new controller products, either an integrated control system or software platform for small-scale grids, facilitating the combination of multiple generation sources (electricity grid, diesel, PV and ES) even for relatively small sites