The Hybrid Power Solutions Market is set to grow from its current market value of more than $8 billion to over $60 billion by 2024, according to the latest study by Global Market Insights, Inc., a market research and consulting firm.
The report states that growing demand for reliable and uninterruptible power coupled with increasing focus on the grid integration of renewable energy will boost the hybrid power solutions market. Favorable initiatives to promote renewable energy, along with the growing demand for decentralized power generation systems will augment the business landscape. In 2015, ABB and Vestas introduced the Wind for Prosperity initiative across remote areas of Kenya to ensure the clean power generation through wind-diesel technology.
The US hybrid power solutions market has witnessed the cumulative capacity generation of 900 MW by 2024. Schemes including FIT, carbon credit and green bonds have provided an impetus for the installation of wind and solar plants, which will further complement the hybrid power solutions market. In 2018, Kauai Island Utility Cooperative (KIUC) announced the deployment of a solar storage hybrid project that will reduce the utility’s peak fossil fuel generation by 55 MW.
Ambitious renewable energy capacity targets coupled with the abundant availability of solar and wind energy will drive the hybrid solar wind market growth. Technological advancement coupled with an introduction of norms to reduce carbon footprints will stimulate the business growth. In 2017, Vestas announced the development of the world’s largest utility-scale solar-wind project comprising of 43.2 MW of wind and 15 MW of solar capacity.
The standalone hybrid power solutions market is set to grow on account of rising demand for reliable and safe electricity supply primarily across remote off-grid areas, according to the report. In 2017, Juhl energy announced the development of a community-based solar-wind hybrid project in the US with an overall capacity of 4.5 MW. Growing demand for renewable energy, the need for improving grid reliability and stability, and low installation costs are some of the prominent features that make its adoption viable.
Around the World
UK hybrid power solutions market is predicted to grow more than 5% by 2024. Government focus on raising the dependency on sustainable and effective power generation to achieve green energy economy structure will positively impact the hybrid power solutions market growth. According to the report, developers across the region are working aggressively toward the enhancement of CUF for their existing power plants. In 2016, Ecotricity announced plans for three new hybrid renewable energy parks that will be generating electricity with a mix of wind and solar energy with overall capacity of 5 MW. The company is approaching 100 MW generation from solar-wind technology by adding green gas mills as a part of new blueprint for Britain.
The China hybrid power solutions market is anticipated to grow more than 3% by 2024. Growing funding toward the deployment of clean energy sources to reduce carbon footprints, along with the introduction of various targets to overcome the rising electricity demand, will propel industry growth. In 2015, the government of China introduced a solar wind system, with an overall capacity of 300 MW that aims to meet the electricity demand by serving 2,000 people across the region.
Declining manufacturing costs of wind turbines, wind blades and solar panels owing to advancement of technology and economy of scale will drive the hybrid power solutions market. According to the report, in 2016, the average nominal cost for the installation of a small wind turbine was recorded from 7000 USD/kW to 7500 USD/kW. In 2016, the cost of PV module has witnessed a decline of 0.5% when compared to 2013.
Key industry participants in the hybrid power solutions market include Blue Pacific Solar, General Electric, Gamesa Wartsila, Zenith Power Systems, Polar Power, Unitron Energy, VONK, Star Sight, Danvest, Vestas, Alpha Windmills, Grupo Dragon, BWSC, FlexGen, A123 systems, Tesla Windlab and Sterling & Wilson.