Analysis of Global Power Market slide image

Analysis of Global Power Market

Analysis of Global Power Market Power Installed Capacity in the World • • The global cumulative power installed capacity increased from 6.6 TW in 2016 to 7.0 TW in 2018, with a CAGR of 2.9%, mainly due to the development of emerging countries. In the next 5 years, the cumulative power installed capacity is forecasted to keep growing and increase to 7.7 TW in 2023, with a CAGR of 2.0%. Among all energy sources, thermal power took the largest market share in 2018, and is expected to remain as the largest energy source by 2023. However, due to the non-renewability of thermal resources and environmental implications, there is expectation of a slowdown in the build-up of thermal installed capacities from 2018 to 2023. Regarding the clean energy source, the cumulative power installed capacity of wind power and solar power increased the fastest in the last 3 years, which increased from 487.7GW and 291.1GW in 2016, to 587.2 GW and 444.3 GW in 2018 respectively. This growth was mainly driven by the supporting policies of the major markets in the world. In the future, The lower cost of wind and solar power, more sophisticated grid technology and management, and increasingly affordable storage are expected to make the cumulative power installed capacity of this two types of power generation keep the growing trend. The installed capacity of hydropower increased at 2.1% annually from 2016 to 2018 and will reach 1.2 TW in 2023, with a CAGR of 1.6%. It is forecasted that by 2023, around 95% of the newly invested global power generation capacity will be in renewables, and that around 30% of the total power generated will be from renewable sources. Cumulative Power Installed Capacity (by Fuel Type), Global, 2016-2023E TW 10 CAGR (16-18) CAGR (18-23E) CAGR: 2.0% Total 2.9% 2.0% CAGR: 2.9% 8 7.4 7.5 7.6 7.7 Hydropower 2.1% 1.6% 6.9 7.0 7.2 7 6.6 1.2 1.2 1.2 1.2 Thermal 1.1 1.2 1.2 1.3% 0.1% 6 1.1 Power LO 5 Nuclear -1.1% 0.6% 4 4.1 4.2 4.2 4.2 4.2 4.2 4.2 Power 4.0 Wind Power 9.7% 7.8% 3 2 0.4 0.3 0.3 0.3 0.4 0.4 -0.4 +0.4 Solar Power 23.5% 11.3% 0.3 0.4 - 0.5 0.5 0.6 0.4 0.6/0.5 0.7 0.6 0.8 0.6 0.8 /0.7 0.9 0.8 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2016 2017 2018 2019E 2020E 2021E 2022E 2023E Other Clean Energy Sources* -0.1% -0.5% Hydropower Thermal Power Nuclear Wind Solar *Other clean energy sources include biomass and waste, tide and wave, and geothermal, etc. FROST Other Clean Energy Sources SULLIVAN Source: EIA, Frost & Sullivan 15
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