16 FROST & SULLIVAN: REPORT


Renewable energy projects will grow fastest


The U.S. Energy Information


Administration has forecast that renewable energy will be the fastest-growing power source through to 2040. New investments in renewable energy rose from US$9 billion in the first quarter of 2004 to $50 billion for 2015's first quarter, according to Bloomberg New Energy Finance, and the volume of installed photovoltaic systems in the United States has grown every year since 2000. The story that renewable energy advocates often share of how their favorite power sources have grown so rapidly over recent years belies the reality that those industries have expanded from small market shares. In 2011, construction began on the Desert Sunlight solar plant—a 550- megawatt farm in Southern California. But that project was only possible with loan guarantees from the US Department of Energy, Milner said. Now, he added, investors can often plunge ahead on renewable energy projects without government help. Years later, MidAmerican Energy— a subsidiary of an energy holding company majority controlled by Berkshire Hathaway Inc., the conglomerate run by business magnate Warren Buffett, whose is linked to value investing—has put more than US$15 billion into renew- able energy projects, largely without loan guarantees. "My view is that the human race is going to start thinking less about burning things for energy," Milner said.


Global installed capacity of renewable energy will more than double by 2025, Frost & Sullivan report shows


Analysis from Frost & Sullivan, Annual


Renewable Energy Outlook forecasts the global installed capacity of renewable energy to more than double from 1,566 gigawatts (GW) in 2012 to reach 3,203 GW in 2025 at an average annual growth rate of 5.7%. Following represents a few highlights from the report:


Solar photovoltaic (PV) technology is expected to account for 33.4% of total renewable energy capacity additions over the 2012-2025 period. Wind follows closely at 32.7%, ahead of hydro power at 25.3%.


Other renewable technologies will


represent the remaining 8.6% of capacity additions. However, economic difficulties in many parts of the world are affecting the outlook for renewable energy. In much of the Western world, the weak economic climate has impacted support schemes, which will continue to be the lifeline for many renewable energy instal- lations until grid parity is achieved. The decline in the cost of renewable


energy due to technological innovation and scale economies achieved through mass deployment have enabled developing countries to adopt these technologies. In fact, global solar power capacity is due to increase from 93.7 GW in 2012 to 668.4 GW in 2025. However, while solar PV is undergoing a veritable boom, massive price falls in this technology have greatly weakened the growth prospects of the concentrated solar power (CSP) market. The global capacity of hydro power will


rise from 1,085 GW (2012) to 1,498 GW in 2025, with China, Turkey, Brazil, Vietnam,


Worldwide Independent Power November 2017 www.gmp.uk.com


India and Russia contributing strongly to market growth. In the wind power market, offshore wind will witness lower- than-expected growth, as political support wanes in Europe. With small- scale wind turbines opening up new applications, global wind capacity will reach 814 GW in 2025 from its 2012 level of 279 GW. “It is little wonder then that renewable energy installations have seen a gradual shift in market power to emerging economies,” comments Harald Thaler, Frost & Sullivan energy & environmental Industry director. “On account of urbanisation, population


growth, energy security concerns, and strong economic development, regions such as Asia, Latin America, the Middle East and Africa have increasingly been contributing to renewable energy capacity growth.” Acccording to Frost and Sullivan,


Europe will remain the leading region in the global bioenergy and waste segment even as future capacity expansion in the segment comes from Southeast Asia, Australasia, North America, Turkey, Iceland and Kenya. Beyond 2025, marine power technology will also be widely deployed as government willingness to back emerging technologies increases, Thaler added.


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