Technavio says Integration of Renewable Grid with Power Grid Networks in APAC Will Boost Growth in the Global Renewable Energy Investment Market

Renewable energy


Technavio, a tech-focused market research firm, has published a new report on the global renewable energy investment market, which is expected to experience a slow but steady growth rate with a CAGR of around 6% during the forecast period 2016-2020.

This latest report by Technavio covers the market outlook and growth prospects of the global renewable energy investment market for 2016-2020, considering 2015 as the base year. In addition, an overview of the market, key leading countries, vendor landscape, and a detailed analysis of the top vendors operating in this market are covered in the report.

Based on geographical division, Technavio market researchers segment the global renewable energy investment market into the following key regions: The Americas, APAC, and EMEA.

Geographical segmentation of the global renewable energy investment market for 2015 (market share %)







                                                                                 Source: Technavio

Renewable energy investment market in APAC

The APAC region accounted for around 58% of the global renewable energy investment market, in 2015. Owing to the support of government initiatives, the incorporation of renewable energy sources with power grid networks is rising globally. In recent years, the industry has grown tremendously due to the increased importance of renewable energy in addressing climate change and improved energy security.  The carbon footprint of electric power systems will be reduced with the incorporation of renewable energy into smart grids.

According to Amit Sharma, a lead analyst at Technavio, specializing in research on power, “High rates of renewable energy production require storage systems that provide backup during periods of intermittency or power outages. Some of the imperative functions of energy storage required for the integration of renewable energy are frequency and voltage regulation, load balancing, and peak shaving. These factors are very important in a smart grid system. It is anticipated that the combination of renewable grid with smart grid technology will enhance investment and financing opportunities for renewable energy vendors. Such developments should drive market growth during the forecast period.”

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Renewable energy investment market in the Americas

In 2015, the Americas accounted for around 27% of the global renewable energy investment market. Technavio anticipates that during the forecast period, the advancements in renewable energy technologies will boost the growth prospects of the renewable energy investment market in the Americas. The investors are trying to frame effective strategies to provide financing and investment opportunities to vendors in the region. They are determined to enhance the existing technologies to gain better output and efficiency, in terms of power generation. The recent advances in the solar technology is the incorporation of highly advanced actuation systems for north-to-south solar tracking and rotary drives for east-to-west solar tracking. This technology can track the sun more proficiently, boosting the overall production from solar power plants. Such developments should increase investments in solar power generation technologies, which will drive the market growth during the forecast period. To increase the deployment of renewable energy, the governments have effectively initiated to issue subsidies to lower the costs associated with renewable energy generation. These government initiatives include various rebates, grants, and production tax credits, which encourages the producers of renewable energy to increase production. Moreover, the provision of feed-in tariffs (FITs) by governments is also propelling further market growth. The top renewable energy companies are now opting for commercial solar installations in over 38 states. Also, additional installations are in progress in Colombia and Puerto Rico, while the industry is also planning expansions in Indiana, Kansas, and Arkansas during the forecast period.

Renewable energy investment market in EMEA

EMEA accounted for around 15% of the global renewable energy investment market during 2015. The increase in investments in EMEA is due to the installations of hydro energy, which is an important factor in increasing renewable energy installations across the region. Based on technology, the renewable energy market in EMEA includes hydro, wind, solar, and others segments. The other segment refers to the biomass and solid waste and geothermal energy. The increasing demand for energy due to increased population, urbanization, and economic progress, will boost investments in several renewable energy sources. On the other hand, the rise in fossil fuel prices, support the use of alternative power generation resources. In EMEA, around 106 renewable projects are in the development stage, which will further lead to an increase in investments in the coming years.

The major revenue contributors of this region are Saudi Arabia, the UAE, Egypt, Morocco, and Tunisia which have favorable policy frameworks and play key role in boosting investments in the market. During the forecast period, it is anticipated that with the increased demand for energy, there will be an increase in investment due to rising installation bases. In addition, the wind and solar segments are predicted to increase their market shares significantly because of the rising importance of emerging technologies such as offshore wind installations, concentrated solar power (CSP), and concentrator photovoltaics (CPV). Solar energy will be the fastest rising technology in the renewable energy investment market in EMEA during the forecast period. Technavio expects the number of solar energy installations to increase significantly during the forecast period.

The top leading vendors operating in the global renewable energy investment market are:

  • Goldman Sachs
  • Macquarie
  • GE Energy Financial Services
  • Center Bridge Partner

Other prominent vendors in the market include Bank of America, BNP Paribas, Citigroup, EKF, KFW, Mitsubishi UFJ Financial Group, and TerraForm Power.

A more detailed analysis is available in the Technavio report tilted, ‘Global Renewable Energy Investment Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.

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