Green energy is clean and renewable energy and these include biofuels, wind, solar photovoltaic, and geothermal. Green energy is gaining huge demand on the account of rising fossil fuel prices and growing environmental concerns. Power generation (grid-scale), rural energy (off-grid) and transportation fuels are some of the key applications of green energy.
The global green energy market is expected to surpass US$ 1,704.88 Bn in terms of value by the end of 2028.
The rising need for energy safety and security is projected to propel the market growth of green energy. The growing need for the safety of energy due to the increasing population and increasing consumption of energy around the globe. Hence, the concern of energy safety and security is a major concern over conventional resources of energy. Moreover, governments across countries such as the U.S., Germany, UK, France, China, and India are taking various steps to diversify their energy portfolio mix which is expected to foster the market growth of green energy over the forecast period.
The growing popularity of hybrid energy generation is expected to provide lucrative market opportunities to the market. The growing focus of manufacturers to introduce more advanced and cost-effective green sources technology is again expected to foster market growth. Growing awareness regarding the green energy sources across rural and remote areas coupled with the growing investment in the green sources is further expected to augment the market growth over the forecast period.
Global Green Energy Market: Recent Developments
The high cost of green energy technologies to conventional sources is expected to restrict market growth. For example, electricity production from natural or shale gas is more cost-effective as compared to solar or wind resources. Thus, the high cost of green energy technologies is projected to restrict market growth.
Global Green Energy Market - Impact of Coronavirus (Covid-19) Pandemic
Like other industries, the green energy market was also hit by the Covid-19 impact badly. There was a disruption in the research programs due to strict containment laws such as lockdown and social distancing. These conditions have has a negative impact on green energy.
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Figure 1. Global Green Energy Market Share, By Application, 2020
Burgeoning middle-class population across the Asia Pacific region has resulted in an increase in energy demand. According to the International Renewable Energy Agency, Asia accounted for 61 percent of total new renewable energy installations and grew installed renewables capacity by 11.4 percent in 2017. Moreover, in the region, China and India are making a huge investment in installing the renewable energy sources system, which is further fueling the market growth of green energy.
Growing efforts by the government to tackle the increasing level of pollution in the environment and to adopt the eco-friendly power generation system is one of the current trends in the market. Growing environmental impact and increasing exploration of new energy resources due to the growing need for sustainable energy and the environment is expected to again bolster the market growth of the green energy. Thus, growing environmental concern around the globe will favor the market growth of green energy in the near future.