Renewable Energy Market Analysis
The Renewable energy market is set to witness a spend growth of over USD 330 billion with spend momentum to accelerate at a CAGR of more than 7% between 2019-2024. The provision of subsidies by governments on renewable sources of energies is driving a large-scale procurement in the renewable energy market. These subsidies are allowing suppliers to provide renewable energy at lower costs than non-renewable energy which are being procured by buyers who are aiming at fulfilling their sustainability goals.
Top Spending Regions in the Renewable Energy Market
Currently, APAC holds the major share in the global renewable energy market and is expected to retain its position through 2024.
APAC
The mandates issued by governments in APAC countries such as India, China, Japan, Thailand, and Indonesia regarding minimization of emissions of greenhouse gases are increasing the demand for renewable energy in the region. For instance, in 2018, 40%-50% of the global investments in renewable energy were made in the region, contributing to the growth of the renewable energy market in APAC.
Europe
The mandates associated with the use of renewable energy by governments are driving procurement in the renewable energy market in the region. For instance, the Renewable Energy Directive 2009/28/EC is an EU directive that specifies levels of renewable energy usage within the EU countries. It specifies that 20% of the energy used in the region, especially by organizations, must be renewable.
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What are the Key Price Trends in this Market?
- The subsidies provided by governments across the world to promote the use of renewable energy and minimize emissions are reducing the cost of renewable energy for buyers during the forecast period.
- The cost of generating electricity from concentrating solar power, bioenergy, solar photovoltaics and onshore wind, hydropwer, and geothermal and offshore wind is declining owing to the competitive procurement and the presence of a large number of suppliers. Competitive procurement is enabling suppliers to provide renewable energy at low costs, which is expected to lead to a decrease in costs for buyers during the forecast period.
- R&D costs will increase during the forecast period due to the rising focus on innovations such as the development of robots for the maintenance of wind turbines in the renewable energy sector.
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Insights Offered in this Renewable Energy Market Report
- Global and regional spend potential for the renewable energy market for the period of 2019-2024
- Supplier relationship management practices in the renewable energy market
- Supplier margins and selection criteria in the renewable energy market
- Top renewable energy suppliers and their cost structures
- Top renewable energy suppliers in the US and their cost structures
- Renewable energy market spend analysis in the US
- Renewable energy price trends, and forecasts
- Cost drivers influencing the renewable energy prices
Insights into Renewable Energy Supply Market
- Service fulfillment costs for suppliers are expected to increase during the forecast period due to the rise in transportation costs. For instance, the sizes of blades of wind turbines are being increased to harness more energy from the same resource, which is expected to propel the transportation costs.
- Global renewable energy suppliers are operating on high profit margins by virtue of their economies of scale and innovative capabilities. Their economies of scale help them lower their operational costs per unit of production. These suppliers have innovative capabilities, such as using light-trapping coating on solar panels, which catches more solar radiation and results in high power generation. This enables them to produce renewable energy at low prices, which reduces the cost of renewable energy for buyers.
- Buyers are advised to evaluate the long-term viability of renewable energy suppliers to gain assurance of the uninterrupted supply of renewable energy. Also, this can help buyers in diversifying energy supply and reducing the dependence on imported fuels, which in turn will minimize their costs. Buyers can assess the long-term viability of suppliers by evaluating their financial stability.
Insights into Some of the Leading Renewable Energy Suppliers
This renewable energy market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top renewable energy suppliers. The top renewable energy suppliers highlighted in this report include:
- Enel Spa
- NextEra Energy Inc.
- Exelon Corp.
- Duke Energy Corp.
- Southern Co.
- Xcel Energy Inc.
Criteria to select suppliers in this dynamic renewable energy market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
