Research Overview
Developments in Renewable Energy Technology Markets Reduce Dependence on Fossil Fuels
The renewable energy market, which had been slack in the last two decades, is in the news as countries attempt to lessen their dependence on fossil fuels. Significant improvements in solar and wind energy technologies have resulted in exceptional market share growth, while geothermal and wave power technologies are beginning to be more visible because of substantial research activities. Hydrogen, considered the key to weaning consumers off oil, has also made rapid strides as an alternative fuel as scientists have discovered more energy-efficient ways to produce it.
This Frost & Sullivan research examines emerging technologies in energy and provides a comprehensive analysis of the impact of recent technological advances on the market. It provides key technical challenges and drivers affecting growth and offers a detailed competitive market analysis. The study evaluates the following leading technologies for renewable energy: solar, wind, geothermal and wave, and hydrogen.
Renewable Energy Sources Gain Market Share Due to Business and Governmental Support
Renewable energy sources are no longer disregarded by multinational oil companies. In fact, BP and Royal Dutch/Shell are huge promoters of solar, hydrogen, and wind energy modes. These companies include renewables in their roster of energy sources and advertise them as important components of their business. Governments are also backing renewables on national and local scales by declaring that renewables must become a bigger part of the energy sector. They back it up by offering research subsidies, financial aid to consumers, and instituting programs that have renewables as a key component.
Although market participants have been including renewables in their energy base, government support is vital as companies do not have sufficient market experience to compete on their own steam despite their recent advances. "A policy framework has to be erected to provide a more level playing field because rules, laws, and systems that have built up over the last century are centered on fossil fuel-based systems," states the analyst. The Japanese Government has subsidized solar power while enterprises in Northern Ireland, the United States, and Germany receive substantial support for harnessing wind energy.
Distributed Generation to Help Localities and Companies Get off the Grid
Generating power for local and specific use is a way of getting localities and companies off the grid and less dependent on power from utilities. "Recent power blackouts in the United States, Italy, and Denmark as well as increasing demands on national centralized generation and transmission infrastructure demonstrate that distributed generation will become progressively important," notes the analyst.
Effective distributed generation can make use of waste heat for space and water heating in winter and cooling in summer. These solutions also provide the benefits of deferral of new transmission and distribution capital investments, elimination of electrical line losses, and better power quality and reliability. Although current distributed generation technologies rely on combined heat and power or reciprocating engines, renewable sources will have a bigger role to play as fuel cells using hydrogen or other fuels become more cost effective.
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