The green power industry, valued at $41.1 billion in 2019, is expected to grow exponentially to reach a staggering $103.5 billion by 2027, expanding at a CAGR of 12.3% from 2020 to 2027. Green power is defined as electricity generated from eco-friendly energy sources, including wind, solar, hydro, geothermal, and biomass. In contrast to finite fossil fuels, which emit harmful greenhouse gases when burned, green power is a clean, renewable alternative that minimizes carbon emissions and mitigates climate change.
As individuals, businesses, and governments alike strive to shrink their carbon footprints and transition towards a sustainable energy future, green power has gained significant traction. Renewable energy adoption targets have been set by several countries, and many utility companies now provide green power purchasing programs for consumers who wish to support the development of renewable energy. The burgeoning green power markets in Asia-Pacific, primarily driven by China and India, can be attributed to increased investments in green power projects. Rising energy demands due to rapid industrialization and population growth in these countries further fuel the market expansion.
Over the forecast period, the building and industrial sectors in Asia-Pacific are anticipated to consume more energy. Although India possesses substantial growth potential, inconsistent policies and business environments have hindered the increase of green power in the country’s overall energy production. Recent years have seen a shift towards localized energy procurement. Governments in countries like India have leveraged community choice aggregation (CCA) policies, enabling them to source green power resources for their constituents while maintaining their current electricity providers for transmission and distribution services. However, the high costs associated with establishing green power infrastructure have constrained market growth.
The green power market is segmented based on power sources, such as solar, wind, biomass, low-impact hydro, and others. In 2019, the wind segment dominated the market, while the solar segment is predicted to experience the highest CAGR during the forecast period. The market is further categorized by end-use sector, including industrial, transport, non-combustible, buildings, and others. Although the buildings sector dominated the market in 2019, the transport sector is projected to grow at a faster rate over the forecast period. Europe led the market in 2019, while Asia-Pacific is predicted to witness the highest CAGR due to increased government and private investments in green power.
Key players in the green power market include GE Renewable Energy, Adani Green Energy Limited, Green Energy Corp., JinkoSolar Holding Co. Ltd., Iberdrola SA, NextEra Energy, Inc., Suzlon Energy Limited, Siemens Gamesa Renewable Energy, Orsted A/S, and Tata Power. To maintain their competitive edge, these market players have adopted various strategies such as product launches and business expansions. The green power market’s resilience against the impact of COVID-19 can be attributed to its lesser dependence on macro factors such as supply chains or lockdowns. Furthermore, the power generation and transmission infrastructure have remained self-sufficient, enabling continuous operation during the pandemic.
By region, Asia-Pacific is anticipated to experience the highest CAGR of approximately 12.8% in terms of revenue during the forecast period. In terms of power sources, the solar segment is projected to grow with a CAGR of 12.7% in revenue during the same period. With regard to end-use sectors, the buildings and industrial segments dominated the market, accounting for over 40.0% and 22.0% of the revenue share in 2019. The report offers a comprehensive analysis of the driving and restraining factors influencing the growth of the green power market, with a focus on market trends, dynamics, and developments. The green power market forecast, and estimations are grounded in factors that impact the market’s growth. This report provides valuable qualitative data to help understand the green power market landscape.
In conclusion, green power represents a promising avenue for renewable energy, with the potential for significant market expansion in the coming years. Governments, businesses, and individuals are increasingly embracing green power sources, driven by their environmental benefits and the desire to transition to a sustainable energy future. The growth of the green power market in Asia-Pacific, particularly in China and India, is fueled by rising energy demands, investments in green power projects, and the adoption of innovative policies.
As green power technologies continue to advance and mature, we can expect further reductions in costs and increased efficiency, making renewable energy sources even more competitive with conventional fossil fuels. The focus on clean and sustainable energy solutions will not only help to combat climate change but will also pave the way for a more eco-friendly, economically viable, and socially responsible energy future. The green power market is poised for substantial growth, and its continued development will play a vital role in shaping the global energy landscape.