With prices for both solar and wind continuing to decline, renewable investment keeps booming at the expense of traditional power generation. Lower project costs and continued regulatory support for renewable energy in key markets will see global renewable power investment reach $243.1bn in 2017, with solar photovoltaic (PV) the fastest growing segment, followed by wind power – by 2020 non-hydro renewables will account for 65% of global power investment.
India is the hottest growth market with renewable investment set to increase by 24% per year to 2020. The evolving market will compel power sector participants to craft innovative business models, offer customer-centric solutions, and create flexible portfolios. There will also be higher consolidation as companies seek funding to expand and introduce novel products.
Global Power Industry Outlook, 2017, a new analysis from Frost & Sullivan’s Power Generation Growth Partnership Service programme, examines power market trends, including installed capacity, investment, and regional growth across coal-fired, gas-fired, nuclear, hydro, solar PV, wind and biomass power.
“As new geographies emerge, local legislation and pro-renewable incentives will impact the fuel mix, compelling industry participants to identify challenges and define localisation strategies for long-term growth,” said Energy and Environment Principal Consultant Jonathan Robinson. “As the renewable and distributed energy markets mature, a large installed capacity of equipment that needs servicing will also offer the operation and maintenance sector attractive growth prospects.”
Key trends in the global power industry include:
“Digitisation has the potential to drive efficiency gains and unlock new revenue streams for market participants in business areas such as demand response, utility as an energy service company or ESCO, predictive and real-time analytics, vehicle to grid, and virtual power plants and microgrids,” noted Robinson. “However, implementation will take time and significant investment.”