The global hybrid power systems market is expected to grow at a CAGR of close to 6% during the forecast period, according to Technavio’s latest report.
In this report, Technavio covers the market outlook and growth prospects of the global hybrid power systems market for 2016-2020. For market revenue calculation, the report considers the following technologies: solar PV-diesel hybrid, wind-diesel hybrid, wind-solar PV-diesel hybrid, and other hybrid systems such as hydro-wind; solar-biomass, fuel cell with solar or wind, etc.
Technavio’s research study segments the global hybrid power systems market into the following regions:
APAC: largest market for hybrid power systems
The market in APAC is projected to increase at a moderate pace during the forecast period, with India, China, and other Southeast Asian countries being the major contributors. The major growth factor in the region is the nonexistence of reliable grid infrastructure, which has driven the need for micro and mini-grids to supply power to the people and industries in remote areas.
The government is also supporting standalone hybrid systems in countries like India and Indonesia. In APAC, there are many countries, which comprise hundreds of islands. In such countries, the geography poses a challenge to supply grid power; this has led to the adoption of distributed power to provide power to the islands.
In 2016, Masdar completed two 100-kW solar PV hybrid systems in Palau, a South Pacific island nation. The project was funded by the Abu Dhabi Fund for Development (ADFD) under the South Pacific Partnership Fund.
Hybrid power systems market in EMEA
The hybrid power systems market in EMEA was valued at USD 1.05 billion in 2015 and is likely to reach USD 1.43 billion by 2020, growing at a CAGR of 6.37%.
“Most EU countries have access to grid electricity due to which the scope for use of hybrid power systems in the residential sector is limited. Although the use of hybrid power systems to improve the electrification rate is low in EU countries, hybrid projects are being developed to meet the renewable energy production goals set by the EU,” says Sayani Roy, one of the industry expert at Technavio for research on power.
For instance, in 2016, Vattenfall added 4.99 MW of solar power to its existing wind power farm at Parc Cynog to increase the share of renewable in its UK sites. In 2016, Ecotricity received approval to build two hybrid energy parks and to expand Britain’s first hybrid energy park with the addition of 5 MW of solar capacity to its existing wind farms.
Hybrid power systems market in Americas
The hybrid power systems market in the Americas was USD 0.92 billion in 2015 and is likely to reach USD 1.18 billion by 2020, growing at a CAGR of 5.10%.
The declining cost of technology and the need to reduce CO₂ emissions are making hybrid power systems an appealing option as a power source in off-grid applications in mining and other industries in remote locations. In regions such as South America, hybrid renewable systems are used along with traditional diesel generators in large-scale industries.
“In the US, the demand for hybrid systems is growing due to governmental support to the funding of projects to reduce the cost of electricity generation from renewable sources. In 2014, the Advanced Research Projects Agency-Energy awarded USD 30 million for 12 solar hybrid projects with the aim of developing hybrid solar energy converters and hybrid energy storage systems, which can deliver low-cost high-efficiency power,” says Sayani.
The top vendors in the global hybrid power systems market highlighted in the report are:
- Shanghai Ghrepower Green Energy
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.