Prosumers (customers who both produce and consume energy) are on the rise globally, as investment in renewables and distributed generation technologies increase. Enabled by smart energy management solutions, smart grids, energy storage solutions, and supportive legislation, the next 5 years will see strong growth in related markets, as well as disruption to the traditional energy business models due to increased penetration of prosumers in the energy value chain. The study details the various drivers for the growth of prosumers along with their discussions. It also provides the three big predictions, entailing the trends witnessed in the market.
Table of Contents
Rise of the ProsumerExecutive SummaryKey FindingsKey CEO 360 Degree PerspectivesThree Big PredictionsRelevant ResearchOverview of ProsumersUtility Models have Gradually Evolved from a Centralised to a Decentralised Model, Encouraging End User ParticipationThe Amount of Energy Produced by a Prosumer is Driven by its Need for Self-sufficiency and its Ability of Grid IntegrationMost of the Existing Prosumers Fall into the ‘Predominant Self-consumption’ Phase of the Evolution CurveProsumers—Drivers and RestraintsLikeliest Scenario for Development of Prosumers See Technology and Regulation Playing Key RolesThe United States, Australia, Germany, and France Offer Attractive Opportunities for Driving the Growth of ProsumersThe European Countries Remain Committed to Energy Efficiency and Climate Change, Driving GrowthKey EnablersKey Enablers Driving Growth of ProsumersKey Enablers Driving Growth of Prosumers (continued)Growth in Decentralised EnergyRenewables, CHP, and Distributed Generation Technology have Largely Contributed to the Rise of ProsumersIncreased Solar Investment Drives Global Growth in Renewable and Decentralised EnergyRenewable Energy has Been a Key Driver for the Rise of ProsumersWith Increased Technological Efficiency, the Cost of Generating Solar Energy has Decreased SignificantlyLevelised Cost of Electricity/Grid Parity Decline in Renewable Costs Makes Prosumer Offering More AttractiveLCOE Should be Lower than or at Least Comparable to Conventional Energy to be Attractive for ProsumersPrice Reduction of PV Modules and Net Metering Policies Adopted Globally are Likely to Reduce LCOESmall Scale PV is Not Yet at Grid Parity but is Catching Up Quickly, Supported by Tax Credits and IncentivesRetail Electricity PriceProsumers—Value PropositionHigh Retail Electricity Price is Very Attractive for Prosumer GrowthSupportive Regulation/LegislationSupportive Regulations and Policies are Key Enablers for Prosumer Growth GloballyRegulators in the US are Unlikely to Let Mass Access to the Grid Without Utility CompensationMeteringSmart Meters are Crucial for Effective Integration of Renewable Electricity by the ProsumersAccurately Tracking Production and Consumption is Key to the Growth of ProsumersEnergy StorageEnergy Storage Costs will be a Game Changer in this Developing MarketDistributed Energy Storage Such as Home Energy Storage and Electric Vehicles as Storage Unit will Drive GrowthEnergy Storage is Predicted to Become an Increasingly Important Enabler for the Rise of ProsumersUS and North East Asia Lead Investments in Energy Storage, While China is a High Growth MarketBusiness Models and Case StudiesHybrid Models are a Combination of Virtual Power Plants, Distribution System Operators, and Technology RetailersHybrid Prosumer Utility Models are Currently Thought to be the Best and Fastest at Achieving CommercialisationCase Study—Power Purchase Agreements (PPAs) are an Attractive Investment Model for Hybrid ProsumersCase Study—Leasing Rooftops will Enable Utilities to Participate in the Prosumer Utility ModelConclusionsRegulatory Actions and Storage Solutions are Crucial Factors Driving Growth of ProsumersLegal DisclaimerThe Frost & Sullivan StoryThe Frost & Sullivan StoryValue Proposition—Future of Your Company & CareerGlobal PerspectiveIndustry Convergence360º Research PerspectiveImplementation ExcellenceOur Blue Ocean Strategy