Wednesday, 18 November 2015

Environmental Regulations and Concerns for Energy Security are Fuelling the Demand for Green Energy


Key green energy technologies include solar photovoltaic (PV), hydropower, bio-fuels, wind energy, and geothermal. Demand for green energy has gained significant traction over the past decade led by growing environmental issues associated with conventional sources of energy and need for energy security. The recent spurt in government support and favorable regulations across countries such as China, Germany, the U.S., India, France and the UK has led to increasing investments in the renewable energy market. According to the European Commission, the European Union aims to obtain 20% of energy from green sources by 2020. This led to high growth in adoption of green energy technology in Europe during the last few years. Higher mix of green energy in the energy portfolio would enable the region to significantly reduce GHG emissions and decrease dependence on imported energy. A gradual shift in investments over the coming years towards a green energy portfolio is necessary to avoid and major damage to climate.

In-depth research report on Global Green Energy Market with Full TOC at : http://www.transparencymarketresearch.com/green-energy-market.html

Transparency Market Research, a leading U.S. based market research firm, analyzes the global market for green energy and expects a compounded annual growth rate (CAGR) of 8.3% for the period 2013 to 2019. According to this research, during the coming years, the adoption of green energy is anticipated to be driven by the increasing government regulations, increased reliability and reducing cost for green energy.

Growth in demand for newer technologies, services and processes is anticipated to emerge out of the ongoing shift towards greener energy resources. Additionally, energy consumption has been growing globally. According to the World Energy Outlook, energy consumption would rise by almost 60% over the next 25 years; developing countries are anticipated to account for majority of the growth. This has raised the concerns related to energy security. Use of green energy sources provides a sustainable way to address the energy security issue. Thus, energy security issue is anticipated to be key driver for the growth of green energy market during the coming years. Furthermore, there has been a significant reduction in prices of green energy such as wind and solar due to technology upgrades and increased competition. The levelized cost of electricity (LCOE) for green energy technologies such as solar and wind are increasingly becoming more competitive to traditional non-renewable energy sources. The reduction in costs associated with providing green energy has made it economically more viable.


Despite cost reductions in recent years, the green energy sources are still relatively costlier. Particularly, a larger upfront cost associated with green energy sources as compared to conventional sources is a major hindrance to growth. Also, the competiveness of green energy sources against traditional non-renewable sources also depends on the policy framework and the market in which it is being operated. Often, governments across the globe offer subsidies on traditional energy sources which make it difficult for green energy to compete cost-effectively. The key players in green energy market are increasingly investing in research and development efforts to enhance efficiency and decrease cost of green energy products. Europe was the biggest market for solar power, while Germany was the major country dominating the solar energy market in 2012. Major installations of solar power plants have been taking place in countries such as China, Japan, India and Australia. Further, demand for solar power is also boosted by growing adoption of the technology by residential end-users. The U.S. had the leading total installed capacity for wind energy in 2012, followed by China. Other major economies for high wind energy capacity installations include Germany, India, Spain and Italy.

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