Market Trends of Renewable Energy Industry
Hydropower Segment is Expected to Dominate the Market during the Forecast Period
- Hydroelectric power (hydropower) is a renewable energy source where electrical power is derived from the energy of water moving from higher to lower elevations. Hydropower projects supply clean water for agriculture, homes, and businesses and mitigate the impacts of extreme weather events such as floods and drought.
- Hydropower is the single largest source of renewable electricity globally. In 2022, renewable electricity generation from hydropower accounted for nearly 41% of total renewable energy, the largest contribution from hydropower in global renewable-based electricity generation.
- According to the International Renewable Energy Agency, in 2022, the global hydropower installed capacity reached 1,393 gigawatts (GW), representing a rise of 2.19% compared to 2021. The hydropower installed capacity is expected to grow with the upcoming hydro projects and technological advancements.
- In August 2022, Natel Energy, created by MIT alumni siblings, developed hydropower systems that included fish-safe turbines and other features that imitate natural river conditions. Thus, with such eco-friendly developments, the hydropower segment's demand is expected to increase during the forecast period.
- In August 2022, the Government of India announced the development of two hydropower projects in Nepal, namely the West Seti Hydropower Project and the Seti River Hydropower Project. The total cost of these projects is expected to be around USD 2.4 billion.
- Thus, the hydropower segment is expected to dominate the market during the forecast period.
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Asia-Pacific is Anticipated to Dominate the Market during the Forecast Period
- Asia-Pacific has dominated the renewable energy market over recent years, and it is likely to maintain its dominance during the forecast period.
- In 2022, China was the global leader in renewable energy deployment. The country's total renewable energy capacity reached 1,160.8 GW in 2022, representing an increase of approximately 13.4% compared to 2021. Hydropower, solar, and wind are the major renewable energy sources in the country.
- India's power demand increased significantly in line with its expanding economy and growing population. In 2022, the country generated 162.96 GW of hydropower, up from 147.12 GW in 2021.
- India has also become the world's third-largest power consumer after China and the United States. India's net power generation capacity increased significantly in the last decade, majorly from renewable energy sources, including large hydro sources.
- The Government of India had set a target of installing 175 GW of renewable energy capacity by FY 2022, including 100 GW from solar, 60 GW from wind, 10 GW from biopower, and 5 GW from small hydropower. The Indian Ministry for New and Renewable Energy expected an investment of USD 15 billion in renewable energy, electric vehicles, manufacturing of solar equipment, and green hydrogen in 2022.
- In January 2022, SJVN (Satluj Jal Vidyut Nigam Ltd) bagged a solar project of 125 MW in Uttar Pradesh through a bidding process held by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The project includes a 75 MW grid-connected solar project in Jalaun and a 50 MW solar project in Kanpur Dehat districts.
- The Japanese government has also targeted reducing carbon emissions to 50% by 2030 and achieving carbon neutrality by 2050. In September 2022, Green Power Investment (GPI) chose GE Renewable Energy as the provider for the Fukaura Wind Farm in Fukaura Town, Nishi Tsugaru District, Aomori Prefecture, Japan. The project, which will include 19 units of GE's 4.2-117 onshore wind turbines, is GE's third in Japan.
- In December 2022, Amazon announced one of its first wind-solar hybrid projects in India with Vibrant Energy, a subsidiary of a portfolio company of Macquarie's Green Investment Group (GIG), India. The two projects represent 300 megawatts (MW) of renewable energy capacity, and the projects are located in Madhya Pradesh and Karnataka.
- Hence, such developments are expected to boost the Asia-Pacific renewable energy market during the forecast period.
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