renewable energy market size, share, and analysis

In case you want to explore renewable energy trends and the influence of Covid-19 on the energy market, get a detailed forecast up to 2025 in this article!

what is renewable energy?

Renewable energy, or as many used to call it clean energy, originates from natural sources that are permanently refilled. For instance, wind and sunlight continue blowing and shining, regardless of weather conditions and time.
Though renewable energy is considered an advanced tech solution, nature's resources have for years been applied for logistics, heating, lighting, and so on.

Currently, that mankind enjoys more and more groundbreaking and financially profitable methods to gather and preserve solar and wind energy, renewables are getting an increasingly significant power source. The proliferation in renewable sources is occurring at small and big scales, starting from solar panels on roofs of edifices, which sell energy back to the grid to wind farms, to the whole rural communities that dynamically use renewable energy for lighting and heating.

exploring renewable energy market

Let's start our renewable energy industry analysis from the "trends establisher", i.e. the US, as the top consumer of renewable energy (67% of the total consumption around the globe).

Starting from 2020, all the states of the US announced the strategy on decarbonization, regardless of the attack of Covid-19 that led to a global pandemic with an economic collapse. Even having no stimulus for the development of eco infrastructure in the country's economics in response to COVID-19, the demand for renewable energy in the US appeared to be stable because renewables witnessed minimizing expenses and growing usage factors and capacity.

Moreover, renewable energy sources displaced other electricity production sources (demand for the last fell in 2021).
In January 2021, the share of renewable energy sources surpassed the share of coal in production for 179 days in contrast to 63 days in 2020. As the US Energy Information Administration states, electricity use will fall by 4.2% year over year in 2021 and grow 1.5% in 2023.
Let's start our renewable energy industry analysis from the "trends establisher", i.e. the US, as the top consumer of renewable energy (67% of the total consumption around the globe).

Renewable energy growth has speeded up in 2021 because, in the US, they began to work within a system that involves rejoining the Paris Climate Accord. Additionally, the country administration invested around 2 trillion US dollars in renewable energy with the target to completely decarbonize the power segment by 2033 to gain a more ambitious idea of zero carbon emissions by 2048.

The above-mentioned steps will support the renewable energy industry in subsequent expansion into innovations, involving improved batteries, green hydrogen technology, and offshore wind. As these innovations, in particular, green hydrogen generating and preserving, head for commercialization, mankind will observe more power-to-x solutions to keep and transform surplus wind and solar energy into carbon-free materials.

The opportunity of growing renewable energy requirements and the electrification of the industrial and transportation segments and intentions of oil and gas manufacturers to expand engagement in the electricity price chain are speeding up energy sector convergence. Those trends will encourage partnership that causes advanced business models and supports the energy transition.

renewable energy market analysis and forecasts up to 2026

In 2019, the installed capacity of renewable energy worldwide gained 2713.60 GW and, as expected, it will reach around 4400.18 GW by 2026, at an average annual growth of 7.13% at the period as of 2021 —2026.
The outburst of the coronavirus pandemic greatly influences global renewable energy market size. In 2021, the market has already faced reduced investments by huge corporations as well as governments owing to the global economic recession. According to International Energy Agency, they expect the investment to fall by 13% year-on-year, in 2021.

The reduction regarding investment has happened due to a lower in energy consumption as well as the economic crisis. Such strategies as auspicious government policies, the growing integration of renewable energy together with the price reduction for wind turbines and solar panels and their setup value, are probably to sustain the global renewable energy industry growth. However, such factors as the growing introduction of alternate renewable energy sources, such as nuclear energy solutions and gas-fired power plants, are to interfere with the market development during 2021 — 2026.

essential renewable energy market trends

In 2020, the production of renewable electricity with the help of hydropower gained a record of 5,233 TWh. This is considered the most powerful input from a renewable energy source in history.

Government policies and goals on the international level play a critical role in hydropower evolution. As far as countries are more and more concerned about climate deterioration caused by renewable energy solutions, the majority of European countries, as well as the US, have offered the hydropower project starting from 31 GW in 2021. As reported by the International Energy Agency, investment in hydropower on the international level in 2021 is already more than 53 billion US dollars.

Nowadays, pumped-storage hydropower amounts to more than 93% of established global energy storage capacity and exceeds 97% of the energy preserved in network applications. In 2020, globally, pumped storage hydropower installed capacity increased by 296 MW. Additionally, according to International Hydropower Association, global pumped storage hydropower capacity will raise by 81 GW by 2033.

Consequently, taking into account all the previously mentioned factors, the hydropower sphere will dominate the market during 2021 — 2026.

Regarding the regions that will dominate the renewables market, Asia-Pacific is expected to do that.

Starting from 2016, the Asia-Pacific region is considered the leader in the renewable energy market in recent years. Most probably, it will keep its dominance up to 2026.
As of 2021, China is the global front runner in renewable energy use. In total, China's renewable energy capacity was about 816.23 GW in 2020, demonstrating growth of around 8.8% as opposed to the value in 2019. Solar, hydropower, and wind serve as the key renewable energy sources in the region.
The demand for renewable energy in India has substantially risen together with its growing economy. In 2020, India used more than 1000 TWh, up from 763 TWh annually starting from 2010. This country has become the third biggest power consumer in the world, leaving behind the US and China. Starting from 2010, India's net power production capacity grew by 209 GW, of which approximately 44% came from renewables.

In 2020, in Europe, the first wind turbine was introduced in Portugal. This became possible due to a fruitful collaboration between Principle Power and Engie and EDP Renewables, REPSOL. This collaboration resulted in the foundation of the WindFloatAtlantic consortium.

The same year, on their official website, the University of California located in Davis posted an ongoing investigation regarding an anti-solar photovoltaic cell to produce electricity during the night. This will help much in designing renewable energy strategies for the nearest period.

The US Department of Energy announced in 2020 that 5 solutions would get approximately 20 million US dollars to make their contribution to the development of innovative geothermal energy technologies.

However, the lockdown due to the Covid-19 pandemic as well as the delivery shortage is slowing down the active projects (already funded). Read more about major US manufacturing challenges in 2021 and how to hire world-class engineers. Starting from March 2020, the lockdown policy peaked, with more than four billion people being subject to total or partial isolation. However, the energy segments in the majority of the regions with lockdown refer to basic services.
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