World Markets for Renewable Energy Systems

Report Highlights

• The value of renewable energy projects worldwide was close to $22.3 billion in 2003 and is expected to rise at an average annual growth rate (AAGR) of 13.2% through 2008, to more than $41.4 billion.
• in excess of 1.2 MW each and minimum wind farm capacities are 20 MW.
• 2008, an 8.9% AAGR, with revenues climbing to $10.6 billion.
• increase to $6.0 billion in 2008.

INTRODUCTION

Renewable energy technologies are capturing an increasingly larger market share of new bulk power. The panoply of renewable energy technologies includes wind turbines, photovoltaics, biogas, biomass, geothermal, small hydropower and ocean energy conversion devices.

This Review abstracts the results of more than two years of research by BCC analysts into the status and markets for renewable energy conversion equipment. The results are discussed, and quantitative forecasts are provided for world and regional markets for large wind turbines, small hydro, photovoltaics, geothermal, biogas and ocean energy conversion devices. Estimates are provided for the contributions from biomass combustion, small wind turbines, and mini, micro and picohydro.

The energy available from renewable sources exceeds world demand by several orders of magnitude. The central question is the rate at which renewable energy technologies will increase their share of the market for energy production and delivery. This summary goes further by identifying the technologies that will participate in the process of market penetration, and the rate at which they will do so.

Key objectives are to present a comprehensive analysis of the status of a full suite of renewable energy conversion technologies, their market penetration, potential and future directions, and to examine their economic status in relation to conventional power sources.

SCOPE OF STUDY

The review:

• Discusses the renewables industry economic environment, technologies and issues
• Examines applications, market factors and potential, and projects shipments of capacity and associated revenues through 2008
• Projects cumulative and annual new capacity for the various technologies from world, regional and national perspectives
• Offers additional research to provide a comprehensive overview of the world photovoltaics market, and estimated the markets for biomass-fueled generation capacity, small wind turbines and mini, micro and picohydro
• Discusses the latest technology trends and other factors, such as funding agencies, resources, industry trends, green power, etc.

METHODOLOGY

BCC presents an analysis, by aggregate and individual renewable energy technologies, of the generating capacity installed in 2003. Our estimated values are megawatts installed and project revenues in terms of dollars. A euro/dollar ratio of 1.15 is assumed throughout.

Then, based on our surveys, we analyze the cumulative capacity for each renewable energy technology sector and forecast new installed capacity and annual project revenues for the period 2003 through 2008. We analyze the cumulative generating capacity by renewables relative to the total world power generation capacity and growth trends. Some attention is given to the potential for the repurposing of renewable energy electricity output.

INFORMATION SOURCES

BCC gathered information for this review through numerous primary sources, including equipment manufacturers, project developers, government regulators, entrepreneurs, utility representatives, investor groups, engineering firms, inventors, risk management firms, balance of plant suppliers, financial services organizations, insurers, bankers, permitting specialists, environmental groups, legislators, government regulators, industry consultants, and project developers and owners. In addition, we compiled data from financial and trade publications, government sources, scientific and technical journals, news services, and the World Wide Web.

AUTHOR'S CREDENTIALS

Michael Kujawa is a market research analyst and renewable energy consultant. He has authored reports on markets for large wind turbines, geothermal power plants, biogas-fueled generation capacity, U.S. power markets during deregulation, cogeneration equipment, stationary fuel cells, small hydro, ocean energy conversion equipment and photovoltaics. He has a background in renewable energy project development, aerospace technologies, and marine operations simulation. In recent years, he has been involved with finding funding and developing plans and strategies for startup companies pursuing industrialization and commercialization of a variety of renewable energy technologies.