Global Renewable Energy Investment Market 2016-2020
About Renewable Energy
Renewable energy is generated from natural resources that include wave, wind, biomass, solar, hydro, geothermal, and tidal power. National governments and corporate enterprises are making heavy investments to develop and enhance clean renewable energy sources. These resources produce large quantities of energy and avoid greenhouse gases that contribute to the climate change. In, Scotland, a total of 60 GW of renewable energy resources is considered to be equivalent to three quarters of the total energy that can be generated by existing power stations in the UK. The innovators and the government in the region are trying to build the largest offshore windfarm in the coast of Scotland. If the Argyll Array is commissioned, it will be located close to the Island of Tiree, which is likely to produce enough energy to power up to one million homes.
Technavio’s analysts forecast the global renewable energy investment market to grow at a CAGR of 5.85% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global renewable energy investment market for 2016-2020. To calculate the market size, the report considers the global total renewable energy investments in the Americas, APAC, and EMEA.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Renewable Energy Investment Market 2016-2020
Technavio recognizes the following companies as the key players in the global renewable energy investment market: Goldman Sachs, Macquarie, GE Energy Financial Services, and Center Bridge Partners.
Other Prominent Vendors in the market are: Bank of America, BNP Paribas, Citigroup, EKF, KFW, Mitsubishi UFJ Financial, and TerraForm Power.
Commenting on the report, an analyst from Technavio’s team said: “Spending on utility-scale renewable energy projects will be a key trend for market growth. The renewable energy projects that are more than 10 MW are said to be utility-scale renewable energy projects that benefit from state and local policies and programs. The state and local policies and programs address the potential barriers by implementing correct measures. The utility-scale renewable energy projects are considered to be highly individualized energy projects wherein the most effective states have coupled renewable portfolio standards with financial mechanisms such as tax benefits and clean energy fund grants. This helps in encouraging and supporting the development of large-scale projects within their borders.”
According to the report, high solar energy investments will be a key driver for market growth. The investments in the solar and wind energy are increasing considerably. If we look at the US market, the Solar Investment Tax Credit (ITC) has provided industry stability and growth since 2006 where it has experienced a CAGR of 60% approximately. On the other hand, there has been a drop in the cost of installation of the solar power plant by more than 70%. This has led to the expansion of new markets that has increased the deployment of multiple systems. The adoption of renewable energy resources is increasing in Saudi Arabia, Qatar, Bahrain, Egypt, Algeria, Morocco, Libya, Jordan, Syria, Iraq, the UAE, and Kuwait, resulting in improved employment opportunities worldwide.
Further, the report states that uncertainties over investment outcome will be a challenge for the market. The initial cost of installing renewable power is high compared with other alternatives. Governments worldwide have provided subsidies, tax incentives, and rebates to boost market growth. However, installation costs associated with renewable energy generation are high. Despite premium payment FITs in Algeria, Iran, Syria, Israel, Jordan, Malta, and Palestine, the growth in renewable power installations has been slower than expected. Solar and wind energy are required to be more cost-effective to ensure sustained market growth during the forecast period.
Goldman Sachs, Macquarie, GE Energy Financial Services, Center Bridge Partners, Bank of America, BNP Paribas, Citigroup, EKF, KFW, Mitsubishi UFJ Financial, TerraForm Power.
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