What’s the value of the green energy market?

Point of note: Written in July 2021.

Apart from being good for the planet, green energy is increasingly becoming good business. Globally, in 2017 the renewable energy market was valued at $928 billion according to Allied Market Research; for reference, in 2017 the coal industry was valued at $600 billion, and peaked in 2012 at $731 billion according to Statista. 

The good news is that the green energy market is set to continue growing. In financial terms, Allied Market Research estimates that by 2025 the global market will be worth $1,512.3 billion, with a compound annual growth rate of 6.1%. In terms of output, in the UK Mordor Intelligence reports that by 2026 the renewable energy market could generate 86.21GW, up from 47.16GW in 2019, with a CAGR of more than 9%. Globally, renewable energy capacity is reported by Expert Market Research as 2455GW in 2020, and is projected to reach 3812GW by 2026. 

As you might expect, this growth is being driven by continued interest and support, both from the public and from governments, of renewable energy. Increasing concern about climate change and other adverse effects of fossil fuels is leading to continued investment and enthusiasm in green energy powering grids.  

When considering the value of different types of energy, Allied Market Research reports that hydroelectric power is far and away the most lucrative source of renewable power, both now and into the future. Second is wind power; biomass comes in third. Interestingly, solar power is only the fourth largest energy type in terms of value, likely due to the challenges with generating power in more temperate climates where sunshine is less frequent and intense. 

As the green energy market continues to grow, it will be important to ensure that power networks are capable of adding more and more power sources into the network – especially as renewable power can often be generated by a larger volume of smaller power stations compared to nuclear and coal plants. In particular, ensuring that cable has been laid to connect new power stations to the grid, and ensuring that the existing network’s cables are able to sustain the increased load, will be essential to delivering on the promise of the booming green energy market.