The decarbonization and decentralization of the energy system have spurred on-site power generation at the residential level, with rising deployments of rooftop solar systems and behind-the-meter batteries. In parallel, on-site generation has seen adoption in commercial and industrial (C&I) facilities facing issues related to grid capacity, energy security, process integration, and production of nontradable byproducts. For example, the need for low-cost and steady electricity drives the current business case for on-site generation in off-grid mining sites and pulp and paper factories.
Moving forward, the same factors that have triggered distributed generation to date are poised to play a role in the future – when C&I facilities will become even larger consumers of electricity. In some cases, the business case for on-site generation will be reinforced by the energy transition; in others, novel technologies and business models are likely to disrupt current practices and displace on-site generation to a certain extent. Our report “The Future Role of On-site Power Generation” explores the future role of on-site power generation in the energy transition.
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