When it comes to power generation, there are two ways to go: small-scale microgeneration or large-scale power plants. Which one is better? The answer is – neither of them. Both are important and you can’t have a successful business without either. However, that doesn’t mean that either of them has an exclusive place in the world of power generation. There are pros and cons for both micro and macro generation, but as a business owner, it’s up to you to decide which one is better for your company in the long run. Let’s take a look at these pros and cons and see if you should invest more into micro or macro power generation.
The global power generation market reached a value of nearly $1,614.03 billion in 2021, having increased at a compound annual growth rate (CAGR) of 4.7% since 2016. The market is expected to grow from $1,614.03 billion in 2021 to $2,462.37 billion in 2026 at a rate of 8.8%. The market is then expected to grow at a CAGR of 10.1% from 2026 and reach $3,982.36 billion in 2031.
The global power generation market is fairly consolidated, with a large number of regional players operating in the market. The top ten competitors in the market made up to 17.66% of the total market in 2021. Major players in the market include Enel SpA, Electricite De France SA, State Power Investment Corporation, E.ON SE, and Engie.
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Growth in the historic period resulted from a rise in power consumption, government initiatives for energy infrastructure, emerging economies, technology advancements, and market liberalization. Factors that negatively affected growth in the historic period were a rise in debts, an increase in interests’ rates, and land scarcity of solar power generation. Going forward, growth in industrial sector, increasing demand for electricity, an increase in investments and growing use of electricity in transportation will drive market growth. Factors that could hinder the growth of the power generation market in the future include aging power generation infrastructure and environmental regulations.
Microgeneration: The Pros
First of all, microgeneration is a great option for companies that operate in remote locations. In other words, microgeneration is a great option for remote companies. Microgeneration is a great solution if you’re going to be selling products or services in remote areas where there are no power lines. In that case, you need a self-sufficient business that can operate autonomously. Microgeneration is also a great solution if you’re going to be producing distributed energy. What does that mean? It means that you’re producing very low-capacity electricity onsite. That is, you’re producing electricity for a certain part of your property.
Microgeneration: The Cons
The biggest problem with microgeneration is that it’s not scalable. That means that your company can’t grow with microgeneration. That’s because you can only generate as much electricity as you can fit on your property. That’s also because you need to be very careful when you’re choosing the location for your microgeneration set-up. It’s not easy finding a place that can generate a significant amount of electricity while also not interfering with the rest of the properties in the area. If you decide to use microgeneration for the rest of your property, you’re basically deciding to keep the rest of the property at the same level of energy poverty.
Macro Generation: The Pros
Macro generation is a great solution if you have multiple sites. In that case, macro generation is a great option for multi-site companies. Macro generation is also a great solution if you need to produce excess energy for the grid. That is, if you’re producing more electricity than you need for your own use, macro generation is a great solution for you.
Macro Generation: The Cons
The biggest problem with macro generation is that it’s not self-sufficient. It can’t produce energy autonomously. In fact, it can’t even produce enough energy to supply its own site. Macro generation is always connected to the grid. That means that if the grid goes down, you lose power as well.
Deciding on a type of power generation for your company
There are two things you need to take into consideration. First of all, how much electricity do you need? And what is your budget? If you have all of that information, you can start thinking about which type of power generation will be best for your company. If you only need a small amount of electricity, microgeneration is a great choice. If you need a lot of electricity, macro generation is a better option. If your budget is low, you can go with microgeneration. But if you have a high budget, macro generation is a better choice.
Final Words
It’s important to remember that there is no single solution to power generation. Both micro and macro generation are important. However, a successful business will need to use both of these ways of generating power.
