June 22, 2022
The global renewable energy market continues to hit new highs, with most countries showing substantial commitments over the last decade. According to a new report from BCC Research, renewable energy is on track to achieve global revenues of $1.5 trillion by 2027, a significant advance from the firm’s $932 billion forecast for 2022.
“Lately, it’s been a whirlwind ride for renewables,” says Greg Johnson, Associate Director of Consulting, BCC Research. “We’ve seen strong commitment from governments and market regulators, with strategies that have pushed the market to new peaks. Producers have seized the renewable energy opportunity, even when production costs were higher. And users are adopting the technologies instead of relying on traditional sources.
“In 2019, all this market action resulted in nearly 11% of global primary energy coming from renewable energy sources. But when we focus in on global electricity generation, that figure was 23%, jumping to 29% in 2020. Then, last year, we saw the fastest year-on-year growth since the 1970s.”
Hydroelectric power leads the renewable energy charge, commanding more than half of all cumulative installed capacity last year. Next up is wind power, which accounted for around one quarter of total installed capacity.
Solar power, which includes solar photovoltaic (PV) and concentrated solar power (CSP), is also a major contender, and BCC Research expects it to be one of the fastest-growing renewable technologies by volume over the forecast period out to 2027.
Geothermal and biofuels are also playing their part in stealing a march on coal, fossil fuels, and other non-renewable sources.
Asia-Pacific has emerged as the leading regional market, with close to half of the global installed renewable energy capacity in 2021. BCC Research also expects the region to grow faster than any other, with a double-digit CAGR from 2022 to 2027.
“Tax benefits and financial incentives in nations such as the U.S., Germany, Iceland, France, the U.K., China and India are all expected to drive production,” says Johnson. “But it’s not just a walk in the park. We expect the comparatively high costs of renewable energy production to generate some market friction. Yet with the triple threat of climate change, energy dependence, and the urgent need for sustainable economic development on a worldwide scale, renewable energy is the only clear way forward.”
Renewable Energy: Technologies and Global Markets( EGY049E )
Publish Date: May 2022
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