Renewable Electricity Generation Market to Grow by USD 215.77 Billion (2024-2028) as Tax Incentives Drive Growth; AI-Driven Market Transformation Report - Technavio

NEW YORK, Nov. 1, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global renewable electricity generation market size is estimated to grow by USD 215.77 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  11.5%  during the forecast period. Tax incentives for renewable electricity generation projects is driving market growth, with a trend towards integration of renewable energy and storage. However, high initial cost of infrastructure and technology  poses a challenge.Key market players include Acciona SA, Adani Green Energy Ltd., BP Plc, Brookfield Business Partners LP, Canadian Solar Inc., Constellation Energy Corp, Duke Energy Corp., Enbridge Inc., GE Vernova Inc., Iberdrola SA, Innergex Renewable Energy Inc., Invenergy, Orsted AS, Plug Power Inc., Schneider Electric SE, Siemens Gamesa Renewable Energy SA, Suzlon Energy Ltd., Tata Power Renewable Energy Ltd., and Vestas Wind Systems AS.

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Market Driver

The integration of renewable energy and storage is a significant trend in the renewable electricity generation market. Renewable energy sources, such as solar and wind, are intermittent, making the combination with advanced storage solutions crucial for ensuring a stable and reliable electricity supply. An example of this trend is the Green River Energy Center in Utah, which boasts a 400 MW solar production capacity paired with a 1,600 MWh battery storage system. This large-scale project's integration of solar power generation and storage addresses the challenge of renewable energy's variability, enhancing grid stability and reliability. The European Bank for Reconstruction and Development's Europe and Central Asia Renewable Energy Scale-up (ECARES) program, a USD2 billion initiative, is another global effort to add 15 GW of renewable energy capacity and reduce carbon emissions significantly. By financing enabling policies, institutional frameworks, and grid integration, the program supports the clean energy transition and improves energy security and affordability. These hybrid projects, such as the Green River Energy Center, demonstrate the feasibility and benefits of combining renewable energy with storage, paving the way for future advancements in the industry. The ability to effectively store energy addresses a major challenge of renewable energy, making the market for renewable electricity generation poised for growth during the forecast period. 

Renewable electricity generation is a growing business trend as industries and consumers seek alternative energy sources for various reasons. Renewable energy, such as solar, wind, hydropower, and biogas, offers several benefits including flood control, clean drinking water, and irrigation support. These sources also produce low-cost electricity and help reduce greenhouse gas emissions and carbon footprint. The demand for renewable energy is increasing due to emissions regulations and the need for low-carbon fuels. Solar power projects, including solar PV installations and solar industry growth, are leading the way with commercial, industrial, and residential applications. Utility projects and unconventional power generation from sunlight, wind, rain, tides, waves, and geothermal heat are becoming more viable and cost-effective. Renewable energy production is essential for energy security and reducing reliance on fossil fuels like coal, oil, and natural gas, which contribute to climate change. 

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 Market Challenges

• The renewable electricity generation market, particularly in the geothermal and ocean energy sectors, faces significant challenges due to high initial costs for infrastructure and technology. These projects demand substantial capital investment, especially for offshore installations, transmission infrastructure, and ongoing maintenance. Marine energy projects, such as tidal and wave energy systems, require complex engineering solutions to withstand harsh marine environments, adding to the expense. Ocean Thermal Energy Conversion (OTEC) technology, in particular, necessitates specialized equipment and deep-sea infrastructure construction, making it costly to develop. Financing for these projects remains limited due to perceived risks, including technological readiness, uncertain regulatory frameworks, and a lack of proven commercial-scale operations. This hesitancy creates a financial barrier that impedes progress. Regulatory hurdles, involving coordination between multiple government agencies, can lead to delays and unclear permitting requirements for offshore energy projects, further increasing costs and complexity. Addressing these challenges is crucial for the successful scaling and commercialization of geothermal and ocean energy projects, enabling them to contribute more significantly to the global renewable energy mix. The high initial costs associated with these projects are expected to hamper the growth of the global renewable electricity generation market during the forecast period.
• Renewable energy generation is a growing business sector focused on harnessing sunlight, wind, rain, tides, waves, geothermal heat, and other natural sources to produce electricity. However, challenges exist. Environmental impact is a concern, but renewables offer a low-carbon economy solution, reducing greenhouse gas emissions from fossil fuels like coal, oil, and natural gas. Climate change and energy security drive the need for renewables, as fossil fuel reserves are finite. Renewable energy targets and feed-in tariffs encourage investment. Smart grids and energy efficiency tools help manage energy demand and distribution costs. EVs, V2G, and renewable power sources like hydroelectric, wind, solar, geothermal, and bioenergy are key players. Power outages and emissions intensity are challenges, but renewable energy plants offer energy self-sufficiency and a path to energy independence. Gas-based power and coal-based power generation face increasing competition. The renewable industry continues to innovate, driving down costs and improving efficiency.

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Segment Overview 

This renewable electricity generation market report extensively covers market segmentation by  

1. Type 
• 1.1 Solar
• 1.2 Wind
• 1.3 Hydropower
• 1.4 Biomass
• 1.5 Others
2. End-user 
• 2.1 Residential
• 2.2 Industrial
• 2.3 Commercial
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Solar-  The renewable electricity generation market is experiencing substantial growth, with solar power being a major contributor. Solar power projects are becoming increasingly common to meet the demand for clean and sustainable energy. One notable example is the Green River Energy Center in Utah, which combines solar production with energy storage, boasting a 400 MW solar capacity and a 1,600 MWh battery storage system. In Europe, solar power projects are also on the rise, such as eight Finnish PV projects with a combined capacity of 282.77 MW, including the Loukkaanaro solar park, a 20 MW ground-mounted installation in Utajarvi, set for completion by 2025. These projects demonstrate the importance of integrating solar power with energy storage for maintaining a consistent electricity supply and reducing CO2 emissions. The solar power segment in the global renewable electricity generation market is characterized by large-scale projects utilizing advanced technologies for energy reliability and sustainability. This trend towards solar power adoption is expected to continue, making it a crucial component of the renewable energy mix in the future energy landscape.

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Research Analysis

Renewable electricity generation refers to the process of producing electricity from natural sources such as sunlight, wind, rain, tides, waves, geothermal heat, and biomass feedstock. Renewable energy is becoming increasingly important as the world transitions away from fossil fuels like coal, oil, and natural gas to reduce greenhouse gas (GHG) emissions. Renewable power sources, including solar power generation and wind energy, offer several advantages over traditional coal-based power generation, such as lower emissions, sustainability, and energy self-sufficiency. However, renewable energy plants face challenges such as environmental impact, electricity distribution costs, power outages, and the need for emissions regulations. Hydropower systems and unconventional power generation from tides, waves, and geothermal heat are also part of the renewable energy landscape. The renewable energy industry is growing rapidly, driven by increasing demand for low-carbon fuels and the need to address climate change. Renewable energy can also provide additional benefits such as flood control and the potential for energy independence. Despite these advantages, renewable energy still faces challenges, including the intermittency of some sources and the need for energy storage solutions.

Market Research Overview

Renewable electricity generation refers to the process of producing electricity from natural sources such as sunlight, wind, rain, tides, waves, geothermal heat, and biomass. These sources offer a sustainable alternative to traditional fossil fuel-based power generation from coal, oil, and natural gas. Renewable energy is essential for addressing climate change, reducing greenhouse gas emissions, and promoting a low-carbon economy. Smart grids and energy efficiency measures, including electric vehicles and vehicle-to-grid technology, play a crucial role in integrating renewable energy into the power system. Hydroelectric power, wind power, solar energy, geothermal energy, and bioenergy are the primary renewable power sources. Renewable energy targets, feed-in tariffs, and emissions intensity regulations encourage the development of renewable energy plants and the transition away from coal-based power generation. The renewable energy industry includes various sectors, including industrial, commercial, and residential, and encompasses utility-scale projects and small-scale installations such as solar PV systems and biogas plants. Renewable energy demand continues to grow, driven by the need for low-cost electricity, energy security, and the search for alternative energy sources. The renewable energy sector also offers significant economic opportunities and contributes to flood control, clean drinking water, and irrigation support. However, challenges such as electricity distribution costs, power outages, and emissions regulations must be addressed to ensure a smooth transition to a renewable energy future.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Solar
• Wind
• Hydropower
• Biomass
• Others
• End-user
• Residential
• Industrial
• Commercial
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

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