The renewable energy sector is on the rise for the past decade, particularly solar and wind power technologies are growing at a rapid pace. According to the Infinium global research report on renewable energy, the global renewable energy market showed steady growth in 2018 as compared to the previous years. This year, a significant amount of investment was registered in renewable power technologies. The global investment in renewable power is expected to reach up to USD 272.3 billion, which is about 65% of the total for all new generation technologies. This is with excluding the large hydropower facilities. Including the large hydropower segment, the investment reaches up to USD 288.3 billion, which is about 69% of the total for all new generation technologies.
Renewable energy is a better and green alternative to conventional fossil fuels. Through the use of renewable energy, we can lower the impact of pollution caused by the combustion of fossil fuels. The consumption of renewable energy has almost doubled in the last few years as the government and international organizations such as the EU and the UN have taken initiatives to lower carbon emission. Global factors including growing pollution levels due to GHG emissions, the number of initiatives by the government organizations and fluctuating prices of fossil fuels are the major. According to the Global Burden of Disease Study by the Institute for Health Metrics and Evaluation (IHME) it has estimated that the number of deaths due to the diseases caused by pollution was around 5 million. Additionally, the carbon emissions from the combustion of fossil fuels have significantly increased worldwide since 1900. Since 1970, carbon emissions have increased by around 90%, with emissions from fossil fuel combustion and industrial processes making about 78% of the total increase in the greenhouse gas emissions from 1970 to 2011. These are the additional factors expanding the demand for an alternative to the conventional energy that in turn is boosting the demand for renewable energy.
Renewable energy technologies covered in this report include Hydroelectric Power, Wind Power Energy, Bioenergy, Solar Energy and Geothermal Energy. Hydroelectric Power accounts for the maximum share of the market based on type. The global stats and the recent development of the renewable energy provided in the report give a better picture of the future market. Growing initiatives by the governments and involvement of the private sectors for the developing of advanced technologies have elevated the market at a global level. With the growing adoption of electric vehicles and off-grid power supply, the market is expected to grow at a sizeable rate during the forecast period.
The global renewable energy market seems to be highly influenced by the regional structure. The environmental properties, legal and regulatory norms, per capita budget and the healthcare infrastructure of the region is affecting the growth of the market. Developing economies in the Asia Pacific region holds a growing share of global energy consumption. The rapidly growing industrialization and urbanization are some of the reasons underlining the growth of the market. On the other side, North America holds a significant share (around 25% in 2018) of the global market. The presence of major renewable energy generating companies and an increasing number of local as well as federal government initiatives are some major factors contributing to the market growth in this region.
The report provides an insight into the recent investments in the renewable energy industry on the basis of technology type. From the study, it was found that in 2018, investment in the renewable energy industry was concentrated on solar power, following a similar trend in the previous year. While the investment was lower as compared to the previous year, which was chiefly due to lower unit costs for solar power and the changes in China’s Photovoltaic (PV) market. While the wind power investment continued to lag behind solar power. However, it has increased minimally in 2018, to USD 134.1 billion. On the other hand, other segments were lagging further behind, although investment in biomass and waste-to-energy increased by more than 50%.
This report also provides country-wise investment trends and opportunities in the renewable energy industry. According to the report, renewable energy investment in developed countries increased by about 11% in 2018. While the investment in the developing world hit a record high of USD 61.6 billion in the same year. China, on the other hand, saw a steep decline in investment among the developing countries. The investment trends varied by region, with investment rising in Europe, Middle East, and Africa, Asia, and the United States while falling in the Americas as well as in China and India.
A market attractiveness analysis is provided in the Infinium global research report on the renewable energy market. The market attractiveness is dependent on the market size and growth rate of the industry. According to the study by Infinium global research, the market attractiveness of the renewable energy industry is expected to be on the higher side at the present Period. There are some additional factors including the number of competitors, pricing and operating margins, which affect the attractiveness of the market.
The leading big investment deals were the final investment decision on the USD 4.2 billion, 700 MW Al Maktoum IV solar thermal project in the United Arab Emirates. The largest financing for wind power was the USD 650 million investment in Torrent Power’s 500 MW project in India, which was awarded in an auction conducted by Solar Energy Corporation of India. Another big transaction for new capacity was the USD 634 million deal for the 60 MW Lostock waste-to-energy project in the United Kingdom.