Offshore Wind Power Market Analysis and Forecast to 2020 - China's Capacity Investments Position It to Overtake Germany by 2018, Second Only to the UK
- Published: October 2011
- Region: China, Germany, Great Britain, United Kingdom
Frost & Sullivan's Financial Benchmarking and Analysis (FBA) service presents an analysis of the investment opportunities in the Asia Pacific (APAC) wind energy market, highlighting major Global and APAC market trends, the market segments and the pockets of investment in each of the segments. The FBA focuses on the various classes of investment wind energy has received and the most lucrative investment avenue. Factors that are driving and restraining the market have been discussed along with the major industry challenges. This research service presents the market from an investor's angle and enables them to assess the market attractiveness.
This Frost & Sullivan research service titled Asia Pacific Wind Energy Market - Investment Analysis provides an in-depth analysis of the market drivers and restraints, industry trends, and competitive environment in addition to the challenges and issues faced by market participants.
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Asia Pacific Wind Energy Market Races Ahead with China as the Torchbearer
In recent years, the Asia Pacific wind energy market has taken huge strides forward. Developed nations such as the United States and the European countries had a strong head start owing to government support, regulations, and the infrastructure to explore the potential of wind energy. During the course of the decade, emerging economies in Asia Pacific, particularly India and China, have made rapid progress and have expanded wind energy generation from 1.7GW in 2000 to 41GW in 2009. "The Asia Pacific accounted for 41 GW capacity in 2009, almost doubling its capacity from 2008," notes the analyst of this research service. "The tremendous wind potential is taking tangible shape due to China’s explosive growth; growth in Chinese installations uplifted the global wind energy market." Though domestic investment is overshadowing foreign investment to a large extent, scope for foreign investment is likely to increase through the course of 2010, as new regulations encourage markets to open up. The Asia Pacific wind energy market was largely immune to the economic downturn, as government-aided institutions and local utilities provided most of the funding for wind energy projects. Globally, there were some problems due to the economic slowdown; however, the stimulus packages (particularly those of the Chinese and Indian Governments) injected much-needed interest in renewables.
Though the prospects for the market look upbeat, there are some challenges reining in market progression. About 30 percent of the wind energy generated does not reach the grid due to inefficiencies. The existing grid is not equipped to transport renewable energy. Unless the grid is upgraded, generation of renewable energy can be seriously hampered. Moreover, ambiguity regarding legislation such as Mandatory Renewable Energy Target (MRET), Generation based Incentives (GBI) and emissions trading has slowed market momentum. Solar energy is approaching large-scale commercialization and its attractiveness will eventually overshadow wind energy. Offshore potential is large in most parts of Asia Pacific and Australia. However, the cost of developing offshore wind power is 2-3 times higher, creating a huge roadblock. There have been notable innovations in deepwater floating turbines and shallow-water turbines, and these advancements will make harnessing offshore potential a viable option.
India, China, Australia, Vietnam, and Thailand are heavily investing in high-voltage direct current (HVDC) systems to support their increasing power load. HVDC also supports renewables, as it enables transmission over longer distances (remote sites) and connects offshore wind power through efficient underwater cabling and lower power loss. Development of feasible energy storage technologies can greatly enhance the contribution of electricity generated by wind energy to the grid. Countries such as Japan are highly dependant on the commercialization of storage technologies to increase the contribution of renewables. "Wind power capital costs are the lowest in Asia Pacific and is expected to reduce by another percent to 30 percent in the next decade," says the analyst. "In the event of the cost reduction and grid upgradation efforts, wind energy is expected to grow steadily."
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Geographic Region:
- Southeast Asian countries (the Philippines, South Korea, Indonesia, Thailand, Taiwan, and others)
- New Zealand
The following technologies are covered in this research:
- Energy storage SHOW LESS READ MORE >
Table of Contents
1. Wind Energy Market
- Global Wind Energy Market
- Status of Wind Energy
2. Asia Pacific Wind Energy Market
- 2.1 Asia Pacific Wind Energy Market Trends
- 2.2 Impact of Recession
- 2.3 Installed Capacity and Forecasts
3. Country Profile
- 3.1 China
- 3.2 India
- 3.3 Japan
- 3.4 Australia
- 3.5 New Zealand
4. Investment Landscape
- 4.1 Cost Components
- 4.2 Investment in Asia Pacific
- 4.3 Venture Capital Attractiveness
- 4.4 Asia Pacific Scorecard
- 4.5 Scope for Foreign Investment
- 4.6 Research and Development
- 4.7 Investment in Asia Pacific – Market Share by Revenues
5. Investment Themes