View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Comment
August 31, 2020

Renewable Energy: Macroeconomic and Regulatory Trends

By GlobalData Thematic Research

With a focus on decarbonising electricity supply, several governments and utilities are focusing on increasing the share of renewable energy sources in the overall energy mix. They have provided support measures that include incentives for renewable power development and to offer a level playing field against conventional sources.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

Listed below are the key macroeconomic and regulatory trends in the renewable energy theme, as identified by GlobalData.

Gradual shift to auctions

A number of federal and provincial governments have moved away from generation based incentives such as Feed-in Tariffs (FiT) and have been adopting the auction mechanism to allocate capacities and sign power purchase agreements (PPAs). Auctions are becoming the new normal. Auction-based bidding will drive solar and wind power in most of the key markets.

Increasing role of distributed sources

Consumers have been engaging more and more with the utilities and – by selling self-generated power back to the grid – are also contributing to supply. Consumers from all segments – residential, commercial, and industrial – are interested in reducing consumption to reduce their emissions and cut costs, and help balance the grid during peak times.

Policy toward renewable energy scaling dependent on political environment

In every conference of parties of the United Nations Framework Convention on Climate Change (UNFCCC), each ratifying government makes commitments which are in line with the incumbent political party in power in the country. Currently a number of countries are trying to reach their commitments made in the Paris Climate Talks during the 21st Conference of Parties – COP21. A few countries have been lagging in their efforts as well.

The commitments made by a country, the efforts put in to withhold these commitments, and the extent to which these governments plan to use renewable energy to achieve these emission reduction commitments depends on the political environment at any point of time.

Capital costs stabilising after falling for years

Capital costs of solar photovoltaic (PV) and wind power have plummeted over the past several years, but in 2020 will not fall as much as they did between 2015 and 2019. Average costs of wind turbines (of capacity 3MW and over) fell by around 25% between 2012 and 2019. Average solar PV module prices fell by around 70% during the same period. Currently, the costs have stabilised and may only see slight reductions. However, in a few years with the use of advanced materials and technological advancements, new products may command slightly higher prices, while also increasing generation efficiencies.

This is an edited extract from the Renewable Energy – Thematic Research report produced by GlobalData Thematic Research.

Related Companies

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology