Frost & Sullivan finds declining capital cost of solar and wind, rise in battery energy storage adoption, disruptive start-ups contributing to competition, and increases in mergers and acquisitions will drive growth opportunities

SANTA CLARA, California, May 18, 2018 /PRNewswire

Frost & Sullivan's recent analysis Global Power Industry Outlook, 2018 reveals that a combination of factors led by renewables is set to transform the current power landscape. Increased battery energy storage capabilities, surges in merger and acquisition activities, and the advent of disruptive energy start-ups are contributing to tremendous growth and transformation in the sector. In early 2017, global solar photovoltaics (PV) capacity surpassed nuclear capacity, driven by high investment levels. The analysis indicates that this growth will continue through 2020 as solar PV is likely to surpass wind capacity, making solar the fourth largest generation type followed by coal, gas and hydro.

Chief highlights and growth opportunities include:

  • The 3D's of Power – Decarbonization, Decentralization, Digitalization – continue to be underlying factors determining the global power market landscape;
  • $2.20 trillion in capital investment will be devoted to generation capacity additions for the period 2017 to 2021 driven mainly by renewable energies;
  • The residential battery storage market will be the fastest growing in 2018 driven largely by the surge in the behind-the-meter residential deployments in the US, Germany, and Australia;
  • Over $400 Billion will be invested annually in generation capacity additions for the period 2017 to 2021 driven mainly by renewable energies, solar and wind, accounting for $603.4 billion and $553.7 billion, respectively during this period;
  • The energy transition is proving to be costly for other sources of generation, and there is little evidence of an improvement in the short term;
  • Considering merger and acquisitions strategies to generate necessary funding to invest in new technologies and offerings;
  • Futuristic thinking as a necessity - implications of macro changes - renewable energy and electric vehicles are still blurred on the electricity system and decisions must be made in light of these changes.

Source: Frost & Sullivan

Illustration Photo: Westmill Solar Park. Watchfield, England, United Kingdom. (credits: Richard Peat / Flickr Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic (CC BY-NC-ND 2.0))

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