Green Power Market

Market Overview

The global green power market size was valued at USD 57 million in 2022. It is projected to reach USD 166 million by 2031, growing at a CAGR of 12.50% during the forecast period (2023-2031). Factors like an increase in investment in green power projects drive market growth.

Green technologies turn renewable energy sources like wind, solar, water, waste, biomass, and geothermal energy into useful forms like electrical and mechanical energy. Green energy, also called clean energy, is made without leaving behind waste that hurts the environment. The growth of the green energy sector is affected by the volatility of fossil fuels and the government's stricter rules for cutting greenhouse gas emissions. The market for electric vehicles is also growing, which is good for the green power business. On the other hand, it is expected that the high cost of green energy infrastructure will slow the market's growth over the projection's time frame.

Market Dynamics

Global Green Power Market Drivers:

Increase In Investment In Green Power Projects

The main driver of the Asia-Pacific green power market's growth is the increase in investment in green power projects in nations like China and India. Energy demand has increased significantly due to fast industrialization and population growth in countries like China and India. During the projected period in Asia-Pacific, it is anticipated that both the household and industrial sectors will use more energy. In addition, India has a lot of room for expansion, but historically inconsistent economic conditions and legislation have resulted in a lower proportion of green power in the country's total energy production. Due to the quick rise in financial support for green power projects, India is one of the nations with the fastest growth in the Asia-Pacific green power industry.

Global Green Power Market Restraints:

High Cost of Production

Infrastructure development for the development of new renewable resources involves significant upfront investments. These expenditures raise the price of supplying renewable electricity, particularly in the beginning. Developers must initially identify publically acceptable areas with quality resources and easy access to transmission lines. Finding a possible wind site and evaluating its suitability needs several years of monitoring. Some renewables need operating experiences in specific climatic circumstances before the performance can be optimized, and employees need to be taught to install, operate, and maintain new technology. 

Global Green Power Market Opportunities:

Government Initiatives

Community choice aggregation (CCA) policies, which allow governments to purchase green power resources on behalf of their constituents while keeping their current electricity providers for transmission and distribution services, have been utilized by several government bodies in nations like India. These schemes allow consumers to obtain electricity from a distributed off-site solar system if they cannot install solar at their homes or businesses. From 2015 to 2016, it was predicted that the installed capacity of community solar systems would triple.

Regional Analysis

Europe Dominates the Global Market

The global green power market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Europe is the most significant revenue contributor and is expected to exhibit a CAGR of 12.35% during the forecast period. The European market analysis includes Germany, France, the U.K., Spain, Italy, Sweden, and the rest of Europe. France comes in second place to Germany regarding green power market share in the area. Additionally, Italy has the smallest market share. Europe is the first region to make efforts in the direction of green energy. The top 10 nations pushing for green energy, according to the Climate Council of Australia, include countries in the area like Denmark, Sweden, Scotland, and Germany. These nations are also close to contributing the desired amount of green energy. Germany is the country that contributes the highest volume and money to the green electricity market.

Asia-Pacific is expected to grow at a CAGR of 12.90% during the forecast period. The Asia-Pacific market analysis includes China, Japan, India, Australia, South Korea, and the rest of the Asia-Pacific region. In terms of market share, China is the dominant nation in the area, followed by Japan. Additionally, South Korea has the smallest market share. China and India dominated the Asia-Pacific market growth in 2019. Both nations in the region saw a significant increase in the use of green energy. Furthermore, the region's market expanded due to the economies' continuing growth.

The U.S., Canada, and Mexico are all included in the North American market analysis. In terms of market share, the U.S. is the main nation in the area, followed by Canada. Additionally, Mexico has the smallest market share. In terms of volume and income, the U.S. led the region. 87% of the volume in the area comes from it. It produces excess green energy and exports it to neighboring nations like Mexico. Furthermore, 28% of the region's overall revenue came from Canada. Additionally, because the cost of green energy varies among the region's many nations, variations in income might be seen.

Brazil, Israel, South Africa, Morocco, and the remaining LAMEA nations are included in the LAMEA market analysis. In terms of market share, Brazil is the dominant nation in the area, followed by Israel. Additionally, South Africa has the smallest market share. Brazil and South Africa were leading the LAMEA market expansion. Furthermore, Israel and Morocco made significant contributions to the production of green energy. According to the BP World Energy Outlook Statistical Review report, Morocco only uses wind and solar energy to produce green energy. The LAMEA area is also fueled by growing government spending in partnership with private and public businesses to support green energy and cut carbon emissions.

Segmental Analysis

The global green power market is segmented by the power source and end-user.

Based on power sources, the global green power market is bifurcated into wind, solar, low-impact hydro, biomass, and others.

The wind segment is the highest contributor to the market and is estimated to exhibit a CAGR of 12.45% during the forecast period. The wind is an important green energy source that significantly contributes to the world's electricity demand. It is the source of power that is most plentiful. Windy areas are more likely to use the source to produce electricity. In terms of revenue, Europe dominated the world market due to its high wind power installed capacity. However, in terms of volume, Asia-Pacific led the market. Since wind energy is the most environmentally friendly energy source, it is frequently used. The market for green power is driven by the expansion of the wind segment in addition to its simplicity of installation and affordability.

Sun radiation is used to produce solar energy. Solar panels can use the sun's energy, a vital energy source. The effectiveness of energy generation declines during rainy days. Consequently, solar energy is influenced by the weather. One of the key elements controlling the solar energy market is the decline in solar module prices. In addition, one of the critical reasons propelling the market is the increase in solar energy infrastructure installation in the residential and commercial sectors in the Asia-Pacific region. One of the major players in the solar energy business in China.

The conversion or transformation of energy from flowing water into electricity is known as hydroelectric power. Water moving through a turbine has kinetic energy, which can be captured and converted to power by connecting the turbine to an electric generator. 25 MW or less of electricity can be produced via low-impact hydro. Activity has increased nationwide, with significant projects in Colombia and Peru. Due to the high costs associated with developing the infrastructure for hydroelectric power generation, there is an increase in RandD efforts to make it more cost-effective. Furthermore, there is no environmental effect from low-impact hydroelectric setup. It is therefore regarded as a clean source of energy.

An organic power source is biomass. It is constructed using components derived from living things like plants and animals. Plants, wood, and garbage are the most typical biomass resources used as energy sources. Various feedstocks with biological origins are used to manufacture biomass. Additionally, Europe has a substantial market share for bioenergy. Several nations implemented measures in 2017 to encourage the production and use of bioenergy. For instance, Brazil's RenovaBio effort is projected to enhance bioenergy production and consumption. In 2017, India announced a program to increase domestic biofuel production and consumption (including advanced biofuels made from agricultural waste).

Others include energy from waste materials like wood and geothermal energy. Geothermal energy is the energy obtained from the earth's internal heat due to the decay of naturally occurring uranium, thorium, and radioactive potassium isotopes. Waste-to-energy is a dependable and sustainable energy source that has served as the foundation for numerous effective solid waste management systems. The top producing nations are the United States, the Philippines, Indonesia, Mexico, and Japan. One of the critical drivers of geothermal output is the existence of sizable geothermal reserves. Facilities that turn waste into electricity are wise financial decisions that help the environment and the economy. As a result, their adoption is influenced by these benefits.

Based on end-users, the global green power market is bifurcated into transport, industrial, and non-combusted buildings.

The buildings segment is the highest contributor to the market and is estimated to grow at a CAGR of 12.20% during the forecast period. Both residential and commercial buildings, as well as farming and fishing, use energy. Due to the increase in population in Asia-Pacific, there is a large surge in energy demand in the residential sector. Solar power or photovoltaic systems, solar thermal, which includes solar hot water and solar ventilation air preheating, geothermal heat pumps, wind turbines, and biomass systems, are examples of clean energy technologies that can be used in building energy systems. All businesses, except those engaged in manufacturing and transportation, are included in the commercial sector, a component of a nation's economy. 

There was a significant increase in passenger and commercial transportation demand as travel by land, sea, and air doubled over the previous ten years. Due to rising disposable income, the travel and tourism business has experienced constant expansion. Due to a rise in transportation methods, including passenger vehicles, trucks, and aviation, the tourism industry has also seen an increase in energy use. Efficient and sustainable energy production methods are being used to meet this rise in energy demand and reduce carbon emissions. Due to the transition from oil sources to electric and hydrogen sources during the previous few years, gains in energy efficiency and decreased carbon emissions have been seen.

Due to the rising industrialization of Asia-Pacific, the industrial sector is experiencing a massive increase in energy demand. The industrial sector uses energy for many things, including process and assembly, steam and cogeneration, process heating and cooling, lighting, heating, and air conditioning. Food, pulp and paper, chemicals, refining, iron and steel, nonferrous metals, and nonmetallic minerals are a few examples of the countless sectors that require a lot of energy. The market for industrial green power is driven by the expansion of industries like food and beverage due to rising consumer demand brought on by an expanding population. 

Fuel used as a feedstock to produce goods like petrochemicals, lubricants, and bitumen is a non-combusted power source. During the projected period, the non-combusted category is anticipated to expand significantly. This is because numerous producers in the petrochemical sector currently employ non-combusted green energy extensively. Due to increased pressure to lower carbon emissions, the petrochemical industry's expansion drives up demand for green energy.

Recent Developments

• February 2023- GreenPower launched the next round of all-electric school bus pilot projects in four new school districts in West Virginia.
• March 2023- Ørsted acquired the Irish solar project Garrenleen from renewable energy developer Terra Solar. The 160 MW solar farm is the company’s second solar project in Ireland and will be able to power up to 56,000 homes annually, making it one of the largest solar farms in the country.