Powered by a strong momentum behind renewable energy, the power market is heading into the 2020s having come many-a-mile from the last decade. The 2020s will be a critical decade for one and all in the power industry, as the transition toward renewable energy is expected to increase in volume, while coal will take a downturn in most developed markets. Simultaneously, the shift towards electric vehicles is expected to create numerous opportunities for emerging business models and collaborations and partnerships between incumbents in the energy and mobility ecosystem. This research and analysis centres on some of the most important market trends across 5 major geographies—North America, Latin America, Europe, the Middle East, China, and India. The most significant trend observed across developed markets is the surge in need for flexibility, as system operators are coming under increasing pressure to manage the system with uncertain renewable output, declining coal output, and demand-side variability. As a result, technologies and solutions such as battery energy storage systems (BESS), gas engines, demand side response (DSR), and virtual power plants (VPP) are witnessing unprecedented adoption rates amongst utilities, solution providers, and end consumers, as these can also participate in flexible markets, including ancillary services. Moreover, the shift towards electric vehicles is expected to give rise to newer business models such as vehicle to grid (V2G), vehicle to home (V2H), and dynamic pricing, as consumers look to monetise their assets through market opportunities. Emerging countries, China and India, are expected to primarily depend on coal in the coming decade even though they continue to add renewable energy capacities to their respective grids. Coal plant utilisation, however, is likely to decline, especially during the day, as solar photovoltaic (PV) continues to penetrate in both markets. The Middle East, on the other hand, underpinned by the shift in energy policy, is starting to shift away from fossil fuels towards renewables, mainly solar PV and wind. Meanwhile, Latin America is set for a record decade, as electricity demand is forecast for above-average growth.
Through various conversations with market incumbents, Frost & Sullivan opines that the following 3 factors are vital for industry participants across the globe:
• Decentralization and Flexibility
• Emerging Business Models
• Collaborations and partnerships on various fronts such as digitisation, electric vehicles, and energy aggregation
Key Issues Addressed
- What are the major trends impacting the power industry, and how will that impact turn out in the 2020s?
- How is the flexibility market ecosystem developing, and which are the key participants of this ecosystem across Europe, North America, and Asia-Pacific?
- What are the major changes one can expect to happen in the power supply mix by the 2020s?
- How is the market for distributed and decentralised energy market currently evolving and how will the 2020s turn out to be?
- What sort of opportunities are opening up as a result of the increasing need for flexibility across key western power markets?
Executive Summary—Key Outcomes
Research Scope
Key Questions this Study will Answer
Key Outcomes—The Decade Ahead for the Global Power Sector
Key Outcomes—The Decade Ahead for the Global Power Sector (continued)
Major Shifts Impacting the Evolution of the Power Sector in the 2020s
Renewables Take Centre Stage
Domination of Renewables—Electricity the New Oil?
Decade of Decentralisation
Decade of Decentralisation—Key Growth Opportunities
Virtual Power Plants—A Key Component of Decentralised Energy
Virtual Power Plants—Ecosystem and Revenues
Growth in OPEX-based Business Models
Growth in OPEX-based Business Models—Driving Renewable Deployment
Digital Power—Driving Greater Efficiency in Power Assets
Digital Power—Driving Next-generation Service Solutions
Storage and EV Infrastructure Go Mainstream—Battery Deployments Surge
Storage and EV Infrastructure Go Mainstream—Boom in V2G and V2H
Energy Efficiency and Management—Demand Response a Key Solution
Energy Efficiency and Management—Vital to Reduce Building Energy Consumption
Hydrogen—An Economy of its Own in the Making
Hydrogen—An Economy of its Own in the Making (continued)
The Decade Ahead for the North American Power Sector
The Decade Ahead for the North American Power Sector (continued)
The Decade Ahead for the North American Power Sector (continued)
Major Trends Impacting the Future of the North American Power Sector
Renewables Dominate New Investment
Energy Efficiency Curbs Consumption Growth
Energy Storage Goes Mainstream
Flexibility is King
Microgrids Boost Resiliency
The Decade of Decentralisation
Market Trends Impact Analysis—North America
The Decade Ahead for the Latin American Power Sector
The Decade Ahead for the Latin American Power Sector (continued)
Major Trends Impacting the Future of the Latin American Power Sector
Renewables Dominate New Capacity Investment
Generation Becomes Local
Growth in Corporate Renewable Energy PPAs
Strong Electricity Demand Growth
Massive Investment in Transmission in Infrastructure Upgrades Expected
Electrification of Mobility
Market Trends Impact Analysis—Latin America
The Decade Ahead for the European Power Sector
The Decade Ahead for the European Power Sector (continued)
Major Trends Impacting the Future of the European Power Sector
Clean Energy Push Expected to Continue
The Decade of Decentralisation
Continued Pressure on Utility CXOs to Innovate and Transform Their Business Model
The Long Goodbye for Coal
Greater Need for Regulatory Intervention
Batteries Hit the Mainstream
Market Trends Impact Analysis—Europe
The Decade Ahead for the Asia-Pacific Power Sector
Major Trends Impacting the Future of the Asia-Pacific Power Sector
Coal Holds on in Asia
Strong Electricity Demand Growth Projected
Green Energy Growth Potential
Boom in Offshore Wind Power Expected
Boost for Microgrids Market Growth
Distributed Solar+Storage
Market Trends Impact Analysis—Asia-Pacific
The Decade Ahead for the Chinese Power Sector
The Decade Ahead for the Chinese Power Sector (continued)
Major Trends Impacting the Future of the Asia-Pacific Power Sector
Strong Investment in Renewable Energy
Diversification From Coal
Gas Increases Slowly
Increasing Market Opportunities for Decentralised Energy
Boosting Plant Operations Through Digital 4.0
China is Expected to Dominate the Global Lithium-ion Battery Market
Market Trends Impact Analysis—China
The Decade Ahead for the Indian Power Sector
Major Trends Impacting the Future of the Indian Power Sector
Strong Growth in Renewable Energy
Coal Remains Key for India
India’s Transmission Grid Under Strain
Economic and Policy Challenges for the Indian Power Sector
Growth in Microgrids
Early Days for Energy Storage
Market Trends Impact Analysis—India
The Decade Ahead for the Middle Eastern and African Power Sector
Major Trends Impacting the Future of the Middle-East and African Power Sector
Gas Remains King in the Middle East
Strong Growth in Solar
Nuclear Power on the Rise?
Surge in Decentralisation
Saudi Arabia in Transition
Push for Energy Conservation Measures
Market Trends Impact Analysis—The Middle East and Africa
Growth Opportunity 1—Risk-Gain Share Models and M&A: New Opportunities for Technology OEMs
Growth Opportunity 2—Expanding Current Solution Offering: New Opportunities for System Integrators and Installers
Growth Opportunity 3—Consumer to Prosumer: New Opportunities for End Users
Growth Opportunity 4—Market Entry to DER: New Opportunities for Utilities
Growth Opportunity 5—Expanding Solution Offering: New Opportunities for ESCOs
Strategic Imperatives for the Global Power Market
Last Word
Legal Disclaimer
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
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Key Issues Addressed
- What are the major trends impacting the power industry, and how will that impact turn out in the 2020s?
- How is the flexibility market ecosystem developing, and which are the key participants of this ecosystem across Europe, North America, and Asia-Pacific?
- What are the major changes one can expect to happen in the power supply mix by the 2020s?
- How is the market for distributed and decentralised energy market currently evolving and how will the 2020s turn out to be?
- What sort of opportunities are opening up as a result of the increasing need for flexibility across key western power markets?
| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Vasanth Krishnan |
| Industries | Energy |
| WIP Number | MEB4-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9AFE-A4,9AFF-A4,9B00-A4,9851,9852,GETE |
Growth Opportunities from Decarbonisation in the Global Power Market, 2019–2030
$3.40 Trillion to be Invested in Renewable Technologies As Energy Transition Gains Much Needed Momentum
16-Jul-2020
Global
Market Research
