Home > News Center

News Center

Frost & Sullivan: Power industry focuses on renewables; Solar PV is the fastest growing
From:kingdomsolar Data:2017-05-26 Hit:449

 Increased decentralisation, the need to decarbonise electricity generation, and digitisation to boost operational efficiency are driving market opportunities in the power industry.

According to Frost & Sullivan (London, UK), continued regulatory support for renewable energy in key markets will see global power investment reach USD 443.5 billion in 2017. Solar photovoltaics (PV) will be the fastest growing segment, followed by wind power, accounting for 37.5 percent and 21 percent of global investment, respectively, by 2020.

USD 141.6 billion solar PV investment forecasted in 2017

Frost & Sullivan High expects growth rates for solar PV, with investment forecast to increase by 11.5 percent to USD 141.6 billion in 2017. International agreements, such as COP21, and declining renewable technology costs, will ensure more capacity per dollar invested.

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 program, 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 & 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."

 

Fastest growth to come from India

According to Frost & Sullivan, China will be the largest market in terms of revenue investment, but the fastest growth will come from India, which will see double-digit growth in investment to 2020.

73.4 percent of power generation investment in Europe will be for renewable technologies, while Russia and CIS buck the trend and focus on nuclear power and hydro.

New business models that incentivise smarter consumption patterns, coupled with growth of energy storage technologies, will reduce the need for peak capacity investment in mature energy markets.