Analysis of Global Power Market slide image

Analysis of Global Power Market

Analysis of Global Power Market Power Installed Capacity in the UK The total cumulative power installed capacity in the UK increased slightly over the past 3 years. However, the fuel type structure of power installed capacity has changed significantly with renewable capacity displacing coal-fired output in the generation mix. The cumulative power installed capacity of wind and solar power increased from 16.1 GW and 11.9 GW in 2016 to 21.8 GW and 13.1 GW in 2018 respectively, which replaced part of power installed capacity of thermal power. In line with other European countries, it was confirmed in September 2017 that the UK government will proceed with action to regulate the closure of unabated coal power generation units by 2025. Among the wind power capacity, the offshore wind power capacity increased significantly from 5.3 GW in 2016 to 8.2 GW in 2018, which was mainly driven by the reducing cost of offshore wind. The UK is the world leader in offshore wind with the highest installed capacity as of 2018. Offshore wind generates around 8% of electricity in the UK, providing power to 4.5 million homes annually. In the last few years, the proportion of thermal power installed capacity decreased from 49.8% in 2016 to 45.1% in 2018 in order to reduce the emission. In contrast, the proportion of clean energy power installed capacity represented by the wind power and solar power kept increasing. The share of wind power increased from 16.2% in 2016 to 20.1% in 2018, and the share of solar power increased from 11.9% in 2016 to 12.1% in 2018. In the future, the cumulative power installed capacity of clean energy is expected to keep the growing trend and further replace the power installed capacity of thermal power. The proportion of thermal power capacity is expected to decrease to around 35% of the total installed power capacity and the proportions of wind power installed capacity and solar power installed capacity are expected to increase to nearly 30% and 15% of the total installed power capacity respectively. Additionally, the offshore wind is also expected to keep the rapid growth with the support of the UK government. Cumulative Power Installed Capacity, UK, 2016-2023E GW 150 CAGR (16-18) CAGR (18-23E) Total 4.2% 2.0% 120 106.0 108.4 110.9 112.7 115.0 117.2 119.4 99.8 1.9 1.9 1.9 1.9 1.9 2.0 2.0 Hydropower 1.2% 1.1% Thermal Power -0.7% -2.4% 1.8 43.3 90 90 47.1 45.9 44.9 44.1 Nuclear Power -0.7% -0.2% 49.0 50.8 49.7 9.2 Onshore Wind 9.2 60 60 9.2 11.9% 4.6% 9.2 Power 9.3 9.4 16.5 17.0 9.4 15.8 15.2 9.5 14.5 Offshore Wind 13.6 12.6 30 30 10.8 -8.2 9.6 10.9 12.4 14.0 15.6 24.6% 13.7% Power -5.3 -7.0 11.9 12.6 13.1 13.9 14.4 15.1 15.8 16.6 Solar Power 5.0% 4.8% 10.8 11.7 13.4 14.6 15.2 15.7 15.7 15.7 0 2016 2017 2018 2019E 2020E 2021E 2022E 2023E Other Clean Energy Sources* 11.5% 3.3% Hydropower Thermal Power Nuclear Onshore Wind Offshore Wind Solar Other Clean Energy Sources *Other clean energy sources include biomass and waste, tide and wave, and geothermal, etc. FROST & Source: Department for Business, Energy & Industrial Strategy, Frost & Sullivan SULLIVAN 26
View entire presentation