For a billion people worldwide, the central grid is a distant promise. The local energy generation market serves off-grid and weak-grid sites where generating power on-site is the only option. Remote mining camps, island resorts, telecommunications towers, and rural villages all rely on local generation. Historically, these sites used diesel generators exclusively. The market is now shifting toward hybrid systems that combine solar PV, batteries, and diesel, dramatically reducing fuel consumption. A well-designed hybrid can cut diesel use by a certain percentage, lowering operating costs and emissions. For islands, the combination of solar and storage can defer or eliminate the need for submarine cables.
The local energy generation market is seeing the adoption of containerized power solutions. These pre-engineered, factory-tested units contain solar panels (on top of the container or mounted nearby), batteries, inverters, and a controller, all housed in shipping containers. They can be delivered by truck, ship, or even helicopter to remote locations. The market is also seeing the use of remote monitoring and control, allowing a central operations center to manage hundreds of distributed sites. For telecommunications towers, small wind turbines are sometimes added to the hybrid system, as towers are often located on windy hilltops.
Pairing the local energy generation market with the broader decentralized power generation market highlights the importance of local fuel supply. In remote locations, diesel fuel must be trucked over long distances, often on poor roads, making it expensive and vulnerable to disruption. Renewable hybrids reduce fuel consumption and extend the time between refueling. The local energy generation market thus offers not only lower operating costs but also greater energy security, reducing dependence on vulnerable supply chains.
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