INDUSTRY REPORT developed , as well as the developing , nations has grown in recent times and this is expected to play a significant role in the growth of the market ,” it added .
Increasing populations and rising incomes , as well as rapid urbanisation and industrialisation in developing nations , have led to greater demand for power generation . Environmental sustainability is a major factor leading to the increased use of renewable sources of energy for the development of power . Technological advances ( such as smart grid technologies ) and seasonal temperature fluctuations are also expected to have a major impact on the demand for electricity across the globe .
“ The power-generation market is segmented by end-user into Industrial , Commercial , Residential and Transportation . Compared to all other end-users of electricity , the largest share in the power-generation market is held by the residential segment ( 36 %). The fastest growth will be registered by the transport segment as the use of electricity in this segment has grown tremendously in recent times due to increased need for transportation . The industrial use of electricity in various sectors ( such as healthcare , chemical industries , food and beverages , and manufacturing ) has shown significant growth and this is expected to be the case during the forecast period ,” outlined Precedence Market Research .
The analyst ’ s report highlights key market challenges ( such as old power generation infrastructure , which is aging and struggling to meet growing demands , and declines in investment ) as well as opportunities .
“ The fossil-fuel segment has dominated the power generation market in recent times with the maximum share in terms of revenue generated . On average , about 57 % of the total share is held by the fossil-fuel segment . However , the fastest compound annual growth rate will be registered by the solar segment in the anticipated time frame as it offers several benefits . The easy availability of solar energy will have a positive impact on the growth of this segment ,” explained the analyst .
Renewable sources provide continuous energy and the use of advanced technologies ( such as storage and carbon capture ) are expected to play a significant role in the growth of this market .
“ Based on source , the non-renewable source segment holds a dominant position ( 69 % of the total share of the global power generation market ). The highest compound annual growth rate will be registered by the renewable source of the power generation market ,” it added . “ Based on the type of grid used , the on-grid segment has occupied the maximum market share of about 98 % and shall continue to grow during the forecast period . In coming years , we foresee an increase in popularity of the off-grid segment and several favourable factors will influence the growth of this segment in the long run ( leading to a higher compound annual growth rate in the years to come ),” said Precedence Market Research .
“ In the past , the highest share of the market was held by the Asia Pacific region ; however , market growth has been increasing in European and North American countries . African and Middle Eastern regions will show significant growth in the years to come ,” it concluded . fifths have renegotiated a fixed tariff for the next year ,” commented UK manufacturer organisation , Make UK , in September last year .
“ Securing their own energy supply has become a priority for many manufacturers , with over a quarter ( 27 %) of firms surveyed saying they have managed to find the funds and have already moved to onsite generation . One in ten have redistributed capital from other parts of the business to cover energy costs while 7 % have taken on new or further finance to cover rising energy bills . Over seven in ten have seen reduced margins or profits as they struggle to pay the bills , with almost every manufacturer we surveyed saying the UK Government is not doing enough to support industry ,” it continued .
High energy prices and weak demand are also taking an enormous toll on UK steel production .
“ Statistics released today show production levels of steel made in the UK during 2022 dropped to their lowest level since the Great Depression , falling by 17 % on year to six million tonnes ( mt ). Steel trade activity reduced both in the UK and globally as supply chains were disrupted and demand has reduced . High costs are hard to swallow and force production levels down . This February , the UK Government announced policy plans for renewable levies , capacity charges and network costs to alleviate energy cost burdens for steel producers and improve competitiveness , but regulations may not all take effect until 2025 ,” cautioned Make UK in May this year .
Increasing populations and rising incomes , as well as rapid urbanisation and industrialisation in developing nations , have led to greater demand for power generation
Clean energy technologies
“ The environmental case for clean energy needed no reinforcement , but the economic arguments in favour of cost-competitive and affordable clean technologies are now stronger – and so too is the energy security case . Today ’ s alignment of economic , climate and security priorities has already started to move the dial towards a better outcome for the world ’ s people and for the planet ,” Dr Birol , IEA Executive Director , said in last year ’ s IEA ’ s World Energy Outlook .
“ The rapid progress of key clean energy technologies shows that the new energy economy is emerging faster than many think ,” commented the International Energy Agency ( IEA ) in July 2023 . “ However , momentum in solar , EVs and heat pumps needs to expand quickly across more countries and to other parts of the energy system to move the world closer to net zero by 2050 ,” it added . The pace of deployment of some clean energy technologies , such as solar PV and electric vehicles , shows what can be achieved with sufficient ambition and policy action , but faster
The effect on manufacturing
High energy prices are no longer just an issue for energy-intensive industries ; the impact is being felt across manufacturers of all sectors and sizes . Manufacturers globally are grappling with rising energy prices and , in some countries , the issue has become “ business-threatening ”.
“ Companies have attempted to mitigate against this with 58 % already adjusting business practices to reduce energy consumption by insulating buildings and installing better performing heat systems . And over half have already priced in the increases into their final product . Some 13 % are now reducing production for short periods or avoiding production altogether during peak energy price periods , with 7 % reducing production already for longer periods in the day . Over a third of firms are actively searching for a new energy provider and two
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