Solar and wind dominate power generation capacity additions

U.S. solar

Solar and wind dominate power generation capacity additions as projections for investment reach $2.20 trillion by 2021, says a new analysis from Frost and Sullivan.

In early 2017, global solar photovoltaics (PV) capacity surpassed nuclear capacity, driven by high investment levels. The analysis indicates that this growth will continue through 2020 as solar PV is likely to surpass wind capacity, making solar the fourth largest generation type followed by coal, gas and hydro.

Other important findings from the report include:

The 3D’s of Power – Decarbonization, Decentralization, Digitalization – continue to be underlying factors determining the global power market landscape;

$2.20 trillion in capital investment will be devoted to generation capacity additions for the period 2017 to 2021 driven mainly by renewable energies;

The residential battery storage market will be the fastest growing in 2018 driven largely by the surge in the behind-the-meter residential deployments in the US, Germany, and Australia;

Over $400 Billion will be invested annually in generation capacity additions for the period 2017 to 2021 driven mainly by renewable energies, solar and wind, accounting for $603.4 billion and $553.7 billion, respectively during this period;

The energy transition is proving to be costly for other sources of generation, and there is little evidence of an improvement in the short term;

Considering merger and acquisitions strategies to generate necessary funding to invest in new technologies and offerings;

Futuristic thinking as a necessity – implications of macro changes – renewable energy and electric vehicles are still blurred on the electricity system and decisions must be made in light of these changes.

“To navigate through current trends and challenges, organizations must start embracing business models that enhance operational and process efficiency while reducing costs. Adopting disruptive digital solutions that focus on consumer needs will bring the organization closer to technological and efficiency transformation,” said Vasanth Krishnan, Energy & Environment Analyst at Frost & Sullivan.

“Analyzing long-term scenarios and defining positioning strategies should be key focus areas for industry participants in the long term,” noted Krishnan. “Also, as the renewable and distributed energy markets mature, a large installed capacity of equipment will need to be serviced, offering attractive growth prospects within the operations and maintenance sector.”

editor@greentechlead.com