Global Power Industry Outlook, 2018

Global Power Industry Outlook, 2018

More than $400 Billion Invested Annually in New Power Capacity as Renewables Continue to Dominate

RELEASE DATE
28-Mar-2018
REGION
Global
Research Code: MDAF-01-00-00-00
SKU: EG01872-GL-MO_21728
$4,950.00
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Description

Frost & Sullivan’s power industry outlook finds that $2.20 trillion will be invested in generation capacity additions for the period 2017-2021 driven mainly by renewable energies, solar and wind, accounting for $603.4 billion and $553.7 billion, respectively. Similar to 2017, Frost & Sullivan expects solar energy to account for the majority of the investment - $123.03 billion in 2018 - with China expected to be the key contributor. The need and the investment climate for solar and wind (offshore) are present and positive. We advise power generation participants to consider this trend and also focus on plant utilization trends before making investments. In the case of wind, the transition to an auction-based system witnessed bids reaching a low; we expect this trend to continue in 2018 as cost optimization is garnering more focus than ever. We forecast hydropower and biomass investment to remain stable at $77.06 billion and $23.30 billion, respectively, for 2018. To the contrary, investment outlook for gas remains low as we forecast new turbine orders to stay similar to 2017, the primary reasons being a) Renewables becoming cost competitive to gas b) Strong need for new turbine orders is absent due to excess capacity on the grid and the focus on other generation types. Moreover, nuclear power is beginning to revive post-Fukushima as China, Europe, and the Middle East are in the process of adding new nuclear capacity. Nuclear investment for 2018 is expected to reach $25.7 billion. Asia-Pacific will be the last bastion for coal as investment outlook is negative and is expected to steadily decline year on year. In addition to generation capacity and investment forecast, eight chief power industry trends have been provided in this outlook. These include the trend of oil majors venturing into the electricity industry, innovative energy start-ups contributing to industry competition, increase in mergers and acquisitions, and the rise of energy storage. This outlook includes predictions for 2018, which we advise participants of the energy industry value chain to consider. Decentralization, Decarbonization, and Digitalization must continue to remain the top priorities for energy utilities and OEMs strategizing for the future.

Key Issues Addressed

  • What is the expected annual investment by generation type till 2021?
  • What is the installed capacity forecast of renewable and conventional generation types till 2021?
  • What are the key trends that are likely to impact the power industry moving forward?
  • Which are the key companies participating in the industry by generation type?
  • What are the key regional trends that industry participants must consider?

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Key Highlights of 2017

Predictions for 2018

Global Installed Capacity Change by Fuel, 2017–2021

Global Power Generation Market Investment Trends

Installed Capacity Forecast

Installed Capacity Forecast (continued)

Key Regional Market Highlights

Key 2018 Power Market Trends

Trend 1—Solar Surge

Trend 2—Wind the New Solar

Trend 3—The Trump Effect

Trend 4—Batteries on the Brink

Trend 5—Electricity, the New Oil?

Trend 6—Turbines in Trouble

Trend 7—Era of Startups

Trend 8—Deal Making is Back

Solar Power Market Outlook 2018

Global Solar Power Market Capacity Trends

Global Solar Power Market Investment Trends

Key Regional Market Highlights

Key Solar Power Market Participants

Wind Power Market Outlook 2018

Global Wind Power Market Capacity Trends

Global Wind Power Market Investment Trends

Key Regional Market Highlights

Key Wind Power Market Participants

Coal Power Market Outlook 2018

Global Coal Power Market Capacity Trends

Global Coal Power Market Investment Trends

Key Regional Market Highlights

Key Coal Power Market Participants

Gas Power Market Outlook 2018

Global Gas Power Market Capacity Trends

Global Gas Power Market Investment Trends

Key Regional Market Highlights

Key Gas Power Market Participants

Nuclear Power Market Outlook 2018

Global Nuclear Power Market Capacity Trends

Global Nuclear Power Market Investment Trends

Key Regional Market Highlights

Key Nuclear Power Market Participants

Biomass Power Market Outlook 2018

Global Biomass Power Market Capacity Trends

Global Biomass Power Market Investment Trends

Key Regional Market Highlights

Key Biomass Power Market Participants

Hydropower Market Outlook 2018

Global Hydropower Market Capacity Trends

Global Hydropower Market Investment Trends

Key Regional Market Highlights

Key Hydro Power Market Participants

Growth Opportunity 1—Business Models

Growth Opportunity 2—Vertical Integration

Growth Opportunity 3—Geographic Expansion

Growth Opportunity 4—Investment/M&A

Strategic Imperatives for Energy Companies

Key Conclusions

Legal Disclaimer

Table of Acronyms Used

Learn More—Next Steps

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Frost & Sullivan’s power industry outlook finds that $2.20 trillion will be invested in generation capacity additions for the period 2017-2021 driven mainly by renewable energies, solar and wind, accounting for $603.4 billion and $553.7 billion, respectively. Similar to 2017, Frost & Sullivan expects solar energy to account for the majority of the investment - $123.03 billion in 2018 - with China expected to be the key contributor. The need and the investment climate for solar and wind (offshore) are present and positive. We advise power generation participants to consider this trend and also focus on plant utilization trends before making investments. In the case of wind, the transition to an auction-based system witnessed bids reaching a low; we expect this trend to continue in 2018 as cost optimization is garnering more focus than ever. We forecast hydropower and biomass investment to remain stable at $77.06 billion and $23.30 billion, respectively, for 2018. To the contrary, investment outlook for gas remains low as we forecast new turbine orders to stay similar to 2017, the primary reasons being a) Renewables becoming cost competitive to gas b) Strong need for new turbine orders is absent due to excess capacity on the grid and the focus on other generation types. Moreover, nuclear power is beginning to revive post-Fukushima as China, Europe, and the Middle East are in the process of adding new nuclear capacity. Nuclear investment for 2018 is expected to reach $25.7 billion. Asia-Pacific will be the last bastion for coal as investment outlook is negative and is expected to steadily decline year on year. In addition to generation capacity and investment forecast, eight chief power industry trends have been provided in this outlook. These include the trend of oil majors venturing into the electricity industry, innovative energy start-ups contributing to industry competition, increase in mergers and acquisitions, and the rise of energy storage. This outlook include
More Information
No Index No
Podcast No
Author Vasanth Krishnan
Industries Energy
WIP Number MDAF-01-00-00-00
Keyword 1 Power Industry
Is Prebook No
GPS Codes 9301-A4,9597,9851,9852,9AFE-A4,9AFF-A4,9B00-A4,GETE