2023 was a record-breaking year for power generation investment, with $864.6 billion committed to global projects. Climate obligations and supportive regulations are the mainstays of global growth. While China has significantly increased its renewable targets in recent years (partly to support domestic technology companies), the US' Inflation Reduction Act, which was passed in 2022, provides a degree of investor certainty never seen before and incentives for investment in domestic supply chains. Furthermore, Russia s invasion of Ukraine in 2022 galvanized Europe to take action, as energy security has become a global megatrend. Inflationary pressures were a major challenge in 2022 and 2023, but they have now abated and project costs have peaked. In the case of solar PV, module prices are at record lows, which is helping to reduce prices gradually. For wind power, the journey to lower project costs will take longer, particularly for offshore wind; nevertheless, significant demand growth continues as many governments have increased policy support. Approximately $1 trillion per annum will be invested in the decade ahead to 2035, with solar PV and wind power accounting for 78% of the total, on average. Investment in fossil fuels will continue, albeit at a much lower scale. Coal and natural gas projects will continue to receive $1.5 trillion in investment during the forecast period (from 2024 to 2035). Author: Jonathan Robinson--BEGIN PROMO--

Research Scope

The forecasts cover power generation investment across 11 core technology sectors and 11 regions.

Revenues are recognized in the year the plant is commissioned.

For more detailed forecasts, including country-specific deep dives, please ask about access to Frost & Sullivan’s Power Generation Growth Generator™. The interactive data platform contains installed capacity, annual capacity additions, investment, and electricity-generated data for more than 60 countries globally.

Scope
Geographic Coverage	Global
Study Period	2023-2035
Base Year	2023
Forecast Period	2024-2035
Monetary Unit	US Dollars
Power Generation Data Points	Electricity generated = TWh Installed capacity/capacity additions = MW/GW

 

Power Generation Industry Segmentation

Coal

• Coal includes all turbine-based, coal-fired power plants.

Nuclear

• Nuclear includes all plants that national utilities operate.

Natural Gas

• Natural gas includes all turbine- and engine-based power plants and decentralized engine-based generation.

Oil/Other Fossil

• Oil/other fossil includes all turbine- and engine-based power plants and decentralized engine-based generation.

Hydropower

• Hydropower includes large plants (output exceeding 10 MW) and small capacity plants (output below 10 MW).

Wind

• Wind includes onshore (including small-scale distributed wind) and offshore wind farms.

Solar PV

• Solar PV includes residential (below 10 kilowatts [kW]), commercial and industrial (C&I) (10 kW–1 MW), and utility-scale (>1 MW) solar PV systems.

Other Renewables

• Other renewables includes all centralized and decentralized biomass, waste-to-energy, biogas, and geothermal plants.

Power generation capacity additions and investments accrue in the year power plants reach commercial operation status.

RE refers to wind, biomass, solar PV, small hydropower (SHP) plants, and geothermal sources but does not include large hydropower (LHP) plants.

Short, medium, and long terms refer to 1–2, 3–4, and 5–12 years, respectively.

 

Key Features

List of Exhibits

Power Generation: Growth Drivers, Global, 2024–2035
Power Generation: Growth Restraints, Global, 2024–2035
Power Generation: Investment Forecast by Region, Global, 2023–2035
Power Generation: Investment Forecast, Global, 2023–2035
Power Generation: Annual Installation by Country and Fuel Type, Global, 2023–2035
Power Generation: Installed Capacity by Fuel Type, Global, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, Global, 2023, 2030, & 2035
Power Generation: Investment Forecast, North America, 2023–2035
Power Generation: Annual Installation by Country and Fuel Type, North America, 2023–2035
Power Generation: Installed Capacity by Fuel Type, North America, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, North America, 2023, 2030, & 2035
Power Generation: Investment Forecast, Europe, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, Europe, 2023–2035
Power Generation: Installed Capacity by Fuel Type, Europe, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, Europe, 2023, 2030, & 2035
Power Generation: Investment Forecast, Latin America, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, Latin America, 2023–2035
Power Generation: Installed Capacity by Fuel Type, Latin America, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, Latin America, 2023, 2030, & 2035
Power Generation: Investment Forecast, India and South Asia, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, India & South Asia, 2023–2035
Power Generation: Installed Capacity by Fuel Type, India & South Asia, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, India & South Asia, 2023, 2030, & 2035
Power Generation: Investment Forecast, MENA, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, MENA, 2023–2035
Power Generation: Installed Capacity by Fuel Type, MENA, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, MENA, 2023, 2030, & 2035
Power Generation: Investment Forecast, East Asia, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, East Asia, 2023–2035
Power Generation: Installed Capacity by Fuel Type, East Asia, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, East Asia, 2023, 2030, & 2035
Power Generation: Investment Forecast, China, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, China, 2023–2035
Power Generation: Installed Capacity by Fuel Type, China, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, China, 2023, 2030, & 2035
Power Generation: Investment Forecast, ASEAN, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, ASEAN, 2023–2035
Power Generation: Installed Capacity by Fuel Type, ASEAN, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, ASEAN, 2023, 2030, & 2035
Power Generation: Investment Forecast, ANZ & Pacific, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, ANZ & Pacific, 2023–2035
Power Generation: Installed Capacity by Fuel Type, ANZ & Pacific, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, ANZ & Pacific, 2023, 2030, & 2035
Power Generation: Investment Forecast, Sub-Saharan Africa, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, Sub-Saharan Africa, 2023–2035
Power Generation: Installed Capacity by Fuel Type, Sub-Saharan Africa, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, Sub-Saharan Africa, 2023, 2030, & 2035
Power Generation: Investment Forecast, Russia and CIS, 2023–2035
Power Generation: Annual Installations by Key Country and Fuel Type, Russia + CIS, 2023–2035
Power Generation: Installed Capacity by Fuel Type, Russia and CIS, 2023, 2030, & 2035
Power Generation: Electricity Generated by Fuel Type, Russia and CIS, 2023, 2030, & 2035