Power Market Status and Trends
Global installed power capacity reached 6,473 gigawatts (GW) in 2016 and is expected to reach 8,259 GW in 2022 at a compound annual growth rate (CAGR) of 4.1%. The global power industry is characterized by heavy dependence on thermal fuel sources for power generation, as major power-generating countries such as China, the US, India, Japan, and Russia have abundant coal reserves. In recent years, significant economic development in China and India and the increased use of coal resources have driven the rapid growth of thermal generation. As energy demand has continued to rise, global warming has become an even more crucial topic of discussion. With insecurities surrounding supplies of conventional fuels and volatile prices, renewable energy is emerging as a feasible alternative.
Thermal power is the largest power-generating source with a 61.1% share of the global installed capacity in 2016. Cumulative installed capacity for thermal power was 3,971 GW in 2016 and is expected to reach 4,604 GW by 2022 at a CAGR of 2.5%. Hydropower is the second-largest power-generating source with a cumulative installed capacity of 1,204 GW in 2016 and accounted for a share of 18.5% of the global pie. Renewable energy sources constituted 938 GW (excluding hydropower) in 2016 and had an installed capacity share of 14.4%. Wind power was the largest renewable source with a share of over 7.7% of the global power capacity in 2016 followed by solar photovoltaic (PV) (4.7%) and biopower (1.8%).
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