How can we contribute to the wider implementation of advanced green energy? This article concisely reviews the main market tendencies, trends, innovations, and challenges the industry is facing, and suggests a custom software solution designed to improve cooperation between the industry’s key players.
In 2022, the worlds renewables market slowed down due to:
- Supply chain disruption
- Trade policy uncertainty
- Increasing interest rates
And some of the mentioned challenges might reflect in 2023, creating resistance.
Growing demand in 2023 could exacerbate those concerns, but also influence pricing and terms of provision. Yet still, evolving trends and innovations that follow could help level headwinds and set the stage for further stable growth in 2024.
So, what is the current situation given factors such as the lasting COVID pandemic, social unrest, and inflation? And what is the probable forecast for the coming years?
Below in this article, we covered a rough market overview to get the picture, and discussed promising solutions that might help boost the transition to a greener future.
According to the Grand View Research, the global renewables market was valued at over $768 billion in 2021 and is now expected to grow at an compound annual growth rate of 16,6% from 2022 to 2030:
- The shift toward adopting green energy in most developed countries gave a great boost to the renewables sector
- In terms of installed green capacities, the sector has witnessed major growth on account of growing environmental concerns, in particular increasing concerns associated with greenhouse gasses
When referring to Global News Wire, the global renewables market is expected to reach $1930 billion by 2030 with an approximate CAGR of 8,5% from 2021 to 2030:
- The potential for further renewables consumption combined with transportation electrification significantly accelerates the convergence of the renewables industry
- Proactively supportive federal policies in the United States might expedite the timeframes for the further development of other advanced technologies (better batteries, wind power, clean hydrogen, and more)
Main trends and innovations to come
The trend for adopting green energy is expanding, nearly quadrupling in the last decade in the United States. Regardless whether the current political agenda will provide sensible support to encourage low-carbon energy, business leaders across industries are expected to continue prioritizing decarbonization.
The trends and innovations to watch out further in the renewables industry are mainly focused around:
- Advanced photovoltaics (19%)
- Artificial intelligence (19%)
There are two ways artificial intelligence can be practically applied in the energy sector:
- Automated decision-making — computerized systems processing information completely without human intervention, providing automation of repeated manual processes, for example, autonomous cars
- Aided decision-making — computer algorithms providing insight for more thought-out decision-making on the human side, which today is actively being used in the medical field, for example, in the cardiovascular domain
3. Distributed energy storage systems (16%)
4. Hydro power (16%)
5. Wind energy (11%)
6. Biomass fuels (5%)
7. Green hydrogen (4%)
8. Grid integration (4%)
9. Advanced robotics (3%)
10. Blockchain technology (3%)
Key players in the renewables sector
- Orsted A/S (DNNGY)
A Denmark-based power company specializing in wind farms.
2. Iberdrola SA (IBDRY)
A Spain-based power company generating, distributing, and trading clean energy:
- Onshore and offshore hydro
- Pumped hydro
- Solar photovoltaics
- Battery storage
3. JinkoSolar Holding Co. Ltd. (JKS)
China-based solar power company, specializing in:
- Solar cells
- Solar modules
- Solar system integration services
- Silicon ingots and wafers
4. Vestas Wind Systems A/S (VWDRY)
Denmark-based wind power company, specializing in:
- Developing, manufacturing, and installing wind turbines
- Providing contracts, spare parts, and other related services
5. Siemens Gamesa Renewable Energy SA (GCTAY)
Spain-based wind engineering company, focusing on:
- Wind turbines and gearboxes
- Wind turbine maintenance and reconditioning services
6. Brookfield Renewable Partners LP (BEP)
Canada-based company, which operates one of the world’s largest publicly-traded decarbonization platforms, focusing on:
- Hydroelectric power
- Wind and solar generation
- Distributed generation
- Energy storage
7. First Solar Inc. (FSLR)
A leading global provider that designs and manufactures advanced photovoltaic solar systems and modules. The company is utilizing a thin-film semiconductor technology converting sunlight into electricity.
8. Canadian Solar Inc. (CSIQ)
A Canadian power provider that designs and distributes advanced photovoltaic solar modules and solutions. The company is operating solar projects and offering operation and maintenance services.
9. Renewable Energy Group Inc. (REGI)
A biodiesel production company known for:
- Biofuel and chemical production
- Waste processing (virgin oils, animal fats, other feedstocks, and methanol)
10. SunPower Corp. (SPWR)
A solar energy company specializing in solar solutions:
- Solar panels and systems
- Solar solution engineering, procurement, and construction
Main challenges renewables leaders are facing
Renewable sources (solar, wind, falling water) are facing strong opposition to the well-established industry. Even though world governments are conducting proactive discussions to introduce green energy, fossil fuels still have massive financing and support.
Renewable energy also faces political challenges linked with economical concerns, which hinder the transition. Political posturing, isolationism, popularism, anti-science rhetoric, as well as corruption are just some factors worth mentioning.
Green energy is mostly positively perceived, as the overall awareness about the climate emergency is rising. But still, political self-interest along with common uncertainty as to the costs and benefits, as well as some other concerns push the clamoring topic further down on the political agenda.
Renewable sources have peculiarities regarding storage, as they highly depend on numerous external factors. Green energy doesn’t match with the demand hours — the forces of nature are unpredictable when speaking about generation and loads.
In terms of considerable installation costs, renewable energy raises doubts among governments and investors:
- The cost of a large-scale solar power system is around $2,000 per kilowatt
- The cost of a residential solar power system is around $3,700 per kilowatt
- In contrast, the cost of a gas-fire plant is $1,000 per kilowatt
Green energy is an apparent solution to the climate emergency, but the high costs are hindering the adoption. And although carbon emission is the main cause of today’s environmental pollution, the costs of traditional, gas-fired plants are perceived more acceptable from the economical perspective.
Community network to boost proactive collaboration
With the different issues in the renewables industry, the revision of the used practices might be quite complex. We believe this requires not only public approval along with political support, but also proactive collaboration of stakeholders.
One of the things to accelerate the transformation of the well-established practices might be digital innovation. We suggest bringing together influential leaders in a user-friendly environment to discuss pressing concerns, organize events, and streamline the adoption of advanced sustainability solutions.
A custom-designed, renewable energy community network might boost:
- Direct communication and cooperation between organizations and providers
- Project and product management
- Data-driven decision-making
- Market and trend research
The on-demand, cloud-based platform could benefit:
- Cleantech buyers by providing:
- Simplified evaluation of opportunities
- Easier exploration of technologies
- Deeper engagement with other community members
- Cleantech providers by providing:
- Better understanding of the dynamic industry
- Faster expansion of the client base
- Efficient promotion