The reducing costs of renewable energy
sources is one of the biggest factors responsible for their soaring utilization across the globe. In addition to this, the increasing number of investments being made for the development of clean energy is another important factor contributing toward the surge of the renewable energy market throughout the globe. For example, according to the Statista report of 2004, the investments on clean energy was found to be more than $45 billion during the same year. Moreover, in 2017, the clean energy investments all around the world were recorded to be $279.8 billion.
The increasing capacity of various renewable energy sources and the surging popularity of battery storage devices are the other major factors fuelling the rising demand for renewable energy sources across the world. Additionally, the increasing pollution levels and global warming caused due to the large-scale utilization of fossil fuels for power generation are expected to significantly boost the growth of the renewable energy market in future. Due to these factors, the global renewable energy market is predicted to demonstrate exponential growth in the coming years.
The most commonly used types of renewable energy are wind energy, hydropower, solar energy, and bioenergy. Out of these, the adoption of solar energy is currently observed to be the highest in the world. Moreover, the solar energy category is registering huge growth in the renewable energy market. This is mainly ascribed to the declining costs of solar energy solutions and the increasing number of incentives and polices being implemented by the governments of several countries for encouraging the adoption of solar energy.
The increasing digitization, adoption of artificial intelligence (AI) and microgrid technologies, growing requirement of energy storage, and the reducing installation costs of renewable energy systems are some of the major trends presently being witnessed in the renewable energy market. Energy storage devices are being increasingly incorporated in renewable energy generation systems for ensuring a steady and smooth supply of power, especially during the extreme weather conditions. On the other hand, microgrids are used in these systems for providing energy efficiency, protection, and independence during emergency situations. The integration of AI in microgrid controllers enables continuous adaptation and improvements in operations.
This is primarily attributed to the increasing environmental damage caused because of the fossil fuels, high economic growth, and rapid urbanization in the various developing nations of APAC such as India and China. In addition to this, the soaring number of measures and initiatives being taken by the governments of several APAC countries for encouraging the adoption of renewable energy sources is causing huge growth of the renewable energy market in the region.
Thus, the utilization of renewable energy sources will increase considerably throughout the world in the forthcoming years, on account of the surging pollution caused by the conventionally used power sources and the increasing demand for eco-friendly methods of power generation all over the world.