The outbreak of COVID-19 has a significant impact on the global renewable energy market. The market is already witnessing decreased investments by governments and private players due to global economic slowdown. According to IEA, the investment is expected to plummet by 10% year-on-year, in 2020. The drop in investment is a result of both the global economic slowdown and a decline in energy consumption. Factors, such as favorable government policies and increasing adoption of renewable energy, with the declining price of solar panels and wind turbines and their installation cost, are likely to support the global renewable energy market. On the other hand, factors like the rising adoption of alternate clean power sources, such as gas-fired power plants and nuclear energy projects, are likely to hinder the market growth during the study period.



Hydropower segment is expected to dominate the renewable energy market, with over 48% share of the total renewable energy installed capacity in 2019.


Technological advancements in Solar PV manufacturing and solving intermittency problems by using energy storage systems are likely to provide huge opportunities for the market studied.


Asia-Pacific is expected to be the fastest growing market during the forecast period, with majority of the demand coming from countries like China, India, etc.



Key Market Trends

Hydropower Segment to Dominate the Market



Hydroelectric power (hydropower) is a renewable energy source where electrical power is derived from the energy of water moving from higher to lower elevations. In 2019, renewable electricity generation from hydropower achieved a record of 4,306 terawatt-hours (TWh). It is the largest contribution from a renewable energy source in history.


In 2019, the total global hydropower installed capacity reached 1,308 gigawatts (GW). This represents a rise of 1.2%, down on the five-year annual average of 2.1% and well below an estimated 2.0% annual growth required to meet Paris Agreement targets. More than 50 countries added more than 15 GW installed capacity in 2019. The one with the highest individual increases in installed capacity was Brazil (4.92 GW), China (4.17 GW), and Laos (1.89 GW).


The major project includes the Belo Monte project in Brazil with the 11,233 MW capacity, the 1,285 MW Xayaburi project in Laos, followed by the 990 MW Wunonglong, and 920 MW Dahuaqiao projects in China.


Government policies and targets play a crucial role in hydropower development. As countries are becoming increasingly concerned about climate change and the role of renewable energy in curtailing it, various countries have proposed hydropower project of more than 29 GW in 2019. According to the International Energy Agency (IEA), global investment in hydropower in 2019 topped more than USD 50 billion.


Moreover, energy storage in the form of pumped storage hydropower (PSH), the world’s '‘water battery’' supports the needs of changing power systems. Many major countries are investing in energy storage in the form of PSH, which is a proven technology that has continuously evolved to suit the needs of changing power systems.


PSH currently accounts for over 94% of installed global energy storage capacity and over 96% of the energy stored in grid-scale applications. During 2019, worldwide pumped storage hydropower installed capacity grew by 304 MW. Moreover, according to IHA, global PSH capacity will grow by 78 GW by 2030, considerably more than other forms of energy storage technologies.


Therefore, based on the above-mentioned factors, hydropower segment is expected to dominate the market during the forecast period.



Asia-Pacific to Dominate the Market



The Asia-Pacific region has dominated the renewable energy market in recent years and is likely to maintain its dominance during the forecast period.


As of 2019, China is the global leader in renewable energy deployment. The country’s total renewable energy capacity reached 814.54 GW in 2019, representing an increase of approximately 8.4% compared to the previous year’s value. Hydropower, solar, and wind are the major renewable energy sources in the country.


Although China is leading the global renewable energy deployment, China’s newly installed RE capacities declined in 2019. The closure of renewable energy Feed-in-Tariffs is one of the major factors for the decline in new capacity additions in 2019.


In 2018, the National Development and Reform Commission (NDRC), which sets prices, had signaled the phase-out of wind and solar feed-in tariffs, in part to address increasing deficits in the funds used to pay for the subsidies. This sudden announcement of phasing out the solar FiTs led to a sharp decline in solar installations in 2018. However, the market recovered in 2019 due to strong growth in new solar and wind installations backed up by the announcement of new subsidy schemes.


Moreover, India’s power demand has increased significantly in line with its expanding economy and increasing population. In 2019, the country consumed 1,285 TWh, up from 851 TWh per year at the beginning of the decade. India has become the world’s third-largest power consumer, behind China and the United States. Further, in the last decade, India’s net power generation capacity increased by 212 GW, of which about 42% of this addition came from renewable energy sources, including large hydro.


Further, as of September 2020, India had a total renewable installed capacity (including hydropower) of about 140 GW, of which 28% or 45.7 GW accounted for large hydropower, followed by solar, which accounted for a share of 27% of the renewable capacity.


In July 2020, India commissioned a 750 MW Rewa solar project in Madhya Pradesh. The Rewa Ultra Mega Solar Power comprises three solar generating units, each with 250 MW capacity. The project is implemented by Rewa Ultra Mega Solar (RUMSL), a joint venture of Madhya Pradesh UrjaVikas Nigam (MPUVN) and Solar Energy Corporation of India (SECI). RUMSL was provided central financial assistance of INR 1.38 billion for the project development.


Therefore, with regular solar auctions and new government megaprojects, like solar parks, Asia-Pacific is expected to dominate the global renewable energy market during the forecast period.



Competitive Landscape

The renewable energy market is fragmented. Some of the major players includes First Solar Inc., Vestas Wind Systems A/S, Canadian Solar Inc., Jinko Solar Holding Co. Ltd, and General Electric Company.

Reasons to Purchase this report:


The market estimate (ME) sheet in Excel format


3 months of analyst support
 
For sample report please visit : https://www.statzyreports.com/report/sr497683/renewable-energy-market
Contact Us:
Poojan Dogra
Public Relations Manager
Email : [email protected]
Email : [email protected]
(IN) - +918484035727
(US) - +1415-871-0483
Website : www.statzyreports.com