Analysis of Global Power Market
Analysis of Global Power Market
Power Installed Capacity in the World
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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
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