Global Renewable Energy Market Research Report, 2030

Market Dynamic

Market Drivers • Climate Change and Policy Commitments:The escalating need to address climate change stands out as one of the most significant influences on the global renewable energy market. The effects of climate change are being experienced globally, from high sea levels to severe weather events, leading nations and organizations to take more urgent action to cut greenhouse gas emissions. Governments worldwide have pledged to the Paris Agreement, which seeks to restrict global warming to under 2°C compared to pre-industrial levels, while striving for net-zero emissions by 2050. Achieving these goals necessitates a shift toward renewable energy sources such as solar, wind, and hydropower. To facilitate this transition, governments are implementing policies like carbon taxes, renewable energy incentives, and subsidies for clean technologies to promote the change from fossil fuels to renewables. These policy structures are attracting investment in clean energy technologies and creating a conducive environment for the expansion of renewables. • Technological Innovation and Cost Reduction:Rapid technological progress serves as another critical factor driving the growth of the renewable energy market. Over the last ten years, advancements in solar photovoltaic (PV) panels, wind turbines, battery storage, and smart grids have significantly lowered the cost of generating renewable energy, making it more competitive with conventional fossil fuels. For instance, solar power expenses have decreased by over 80% since 2010, propelled by improvements in solar panel efficiency, economies of scale, and mass production practices. In like manner, wind energy has gained from enhanced turbine designs and more effective materials, resulting in reduced capital expenses and increased energy outputs. Furthermore, advancements in energy storage technologies such as lithium-ion batteries and pumped hydro storage are overcoming the intermittency challenges of renewable energy, enabling improved integration into the power grid. These technological enhancements are speeding up the global adoption of renewables. Market Challenges • Intermittency and Energy Storage:A central challenge confronting the global renewable energy market is the intermittency of various renewable energy sources, especially solar and wind. These energy types are reliant on weather conditions, which are variable, leading to variations in energy production. Energy storage solutions, such as batteries, are crucial for maintaining a stable energy supply when renewable generation is low, but this technology remains costly and requires further development for widespread application. Despite significant progress in battery storage and grid management, there is a need for more cost-effective and scalable storage options to fully assimilate renewables into energy grids without disrupting the balance of supply and demand. • Upfront Investment and Financing:Despite the declining expenses associated with renewable energy technologies, the initial capital costs for large-scale renewable ventures, such as solar farms and offshore wind turbines, continue to be considerable. Obtaining financing for these projects can be difficult, particularly in areas where access to funds is restricted or where there are risks linked to political instability, regulatory unpredictability, or insufficient infrastructure. Although private sector investment is increasing within the renewable field, particularly for commercial projects, developing nations frequently depend on international financial institutions and development banks to support renewable efforts. Tackling these financial obstacles is vital for expanding renewable energy in emerging markets and accomplishing the global energy transition. Market Trends • Decentralized Energy Systems and Prosumer Models:There is an increasing trend towards decentralized energy systems, where energy production occurs at the site of consumption instead of through centralized power facilities. Rooftop solar panels, small-scale wind turbines, and community-owned solar initiatives are instances of this trend. The emergence of prosumer models, in which consumers also generate and sell energy back to the grid, empowers individuals, businesses, and communities to gain greater control over their energy usage. This trend is supported by innovations in smart grid technology and energy storage systems, which enable more efficient energy management and distribution. As energy generation becomes more localized and decentralized, it strengthens energy security, lessens transmission losses, and encourages sustainability. • Green Hydrogen and Clean Fuel Technologies:Green hydrogen is surfacing as a prominent trend in the international renewable energy market. This gas is produced using renewable energy to separate water into hydrogen and oxygen through electrolysis, creating a clean substitute for fossil fuels in hard-to-decarbonize sectors such as heavy industry, transportation, and aviation. In contrast to traditional hydrogen, which is generated using fossil fuels (gray hydrogen), green hydrogen holds the promise of significantly lowering carbon emissions in these areas. Numerous nations, including Germany, Saudi Arabia, and Australia, are making substantial investments in the infrastructure for green hydrogen production, storage, and distribution. With the reduction in the costs of electrolysis technology, it is anticipated that green hydrogen will play a significant role in the global energy transition, complementing renewable electricity and creating new opportunities for clean fuel production.

Key Development

• 2010: The global renewable energy capacity achieved a notable benchmark, with total renewable capacity surpassing 1,200 GW. The price of solar photovoltaic (PV) panels began to decline significantly, rendering solar energy more economical and reachable. • 2011: China established itself as the leading nation in renewable energy, especially solar energy, outpacing other countries in both installations and manufacturing prowess. The International Renewable Energy Agency (IRENA) was established to advocate for renewable energy worldwide. • 2012: The wind energy market experienced swift expansion, particularly in Europe and the U. S. , while China remained the foremost producer. The global investment in renewables reached $280 billion, indicating a rising interest and dedication to clean energy solutions. • 2013: The solar energy sector grew quickly, notably in Germany, which topped in installed capacity. The U. S. saw an increase in installations of wind and solar power, aiding the country's clean energy objectives. • 2015: The Paris Agreement was ratified, establishing ambitious global objectives for decreasing carbon emissions and encouraging nations to shift toward renewable energy. Renewables contributed nearly 30% of global electricity generation, highlighting a significant milestone for clean energy. • 2016: Offshore wind energy initiatives gained traction, particularly in Europe. The global renewable capacity exceeded 2,000 GW, spurred by significant investments in solar and wind energy. • 2018: The cost of renewable energy technologies persisted in its downward trend, with solar and wind becoming less expensive than fossil fuels in many regions globally. Nations like India and China achieved new milestones for renewable capacity additions. • 2020: Renewable energy represented 90% of new power generation globally, with solar and wind leading the industry. The COVID-19 pandemic produced mixed outcomes, causing temporary downturns but accelerating long-term renewable adoption due to economic recovery strategies concentrating on clean energy. • 2021: Significant pledges were made by nations for net-zero emissions by 2050, accelerating renewable growth. The solar energy market achieved new highs in installations, especially in Asia and North America.