Global Floating Power Plant Market - 2022-2029

Global Floating Power Plant Market - 2022-2029

Market Overview

The global floating power plant market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Floating power plants are electricity generating stations that float over a body of water, such as a reservoir, lake, or ocean. Floating power stations are portable and less expensive to build, operate and maintain than land-based power plants. Floating power plants are typically solar, wind, natural gas and nuclear.

A floating solar power plant consists of an array of solar panels floating on a body of water and connected to an onshore energy grid or storage. Offshore wind turbines are built in shallow or transitional ocean waters and connected to the onshore grid. Natural gas involves an LNG carrier converted into a stationary floating barge with integrated gas turbines for electricity generation.

A floating nuclear power plant consists of a barge with one or two marine nuclear reactors connected to an onshore grid. Floating nuclear power plants are not self-propelling, unlike nuclear-powered ships. The rising global demand for energy is driving growth for floating power plants, especially in developing or undeveloped areas and meeting the energy requirements of remote mining or construction projects.

Market Dynamics

The increasing global energy consumption mainly drives the demand for floating power plants. The operational drawbacks of floating power plants are a key factor in limiting the growth of this market.

Increasing demand for global energy

Rapid industrialization and urbanization are occurring globally, especially in emerging markets worldwide. New manufacturing and service industries are being set up across many major countries in every region of the world. It has created sustained demand for energy.

Apart from establishing new industries, there has been a complete change in lifestyles in the modern age. Various home appliances such as television, smartphones, laptops, washing machines, and kitchen appliances have become commonplace in modern households. People today are leading more energy-dense lives than ever before. It has, therefore, led to increased energy consumption.

A vast majority of the underdeveloped world lacks sustainable power transmission and distribution infrastructure. It cannot afford the funds required to build new infrastructure. Access to electricity is a basic necessity and not a luxury in the modern age. The underdeveloped world cannot progress economically and industrialize without a stable electricity supply.

The usage of floating power plants can help alleviate the power crisis in the underdeveloped world. Floating power plants are cheaper to construct than land-based plants and can be easily deployed in areas with less developed infrastructure. The rising global energy demand is a key driver for the growth of the floating power plants market.

High cost and vulnerability of floating power plants

Floating power plants have numerous advantages, such as portability and lower operating costs; however, they also have many drawbacks. Floating power plants are extremely expensive, sometimes costing twice as much to build when compared to a land-based power plant of the same capacity.

Construction of floating power plants takes place on land, and then they are floated and towed to their required destination. The logistics of floating power plants are complex and enormous costs are involved in towing the plant from the place of construction to the place of operation. Due to the various inherent risks, many reputed global insurance companies and banks also refuse to finance and insure the floating power plant projects. Funding and insurance liabilities add to the project cost.

Floating power plants are also uniquely vulnerable to weather phenomena and natural disasters: tropical storms, tsunamis, cyclones and rough seas. The impact of natural weather events is considered to add more structural rigidity when constructing floating power plants. It adds to the construction costs. The high costs and vulnerability of floating power plants limit their usage and are a key challenge to the market's growth.

COVID-19 impact analysis

The global floating power plant market experienced severe impacts on production and deployment in 2020 due to the COVID-19 pandemic. Lockdowns and other movement restrictions imposed by governments halted construction activities. Only minor and major maintenance activities were taking place during the initial phase of the pandemic.

A wide range of subcontractors manufactures the various components required to construct floating power plants. The parts are manufactured and assembled in many different countries globally. Therefore, the supply chain is fragile and highly vulnerable to external shocks. The global pandemic has caused massive shocks to the global supply chain and logistics, thereby affecting the construction of floating power plants. The backlog in construction is not expected to be cleared before the end of 2021. Many new projects are currently on hold due to the economic uncertainty and material shortages caused by the pandemic.

The short-term impact of the COVID-19 pandemic has been relatively severe for the floating power plant market. Major cuts to capital expenditures and new investments in response to the pandemic halted expansion and new projects. The pandemic will not impact the medium and long-term growth of the global floating power plant market since governments are prioritizing investment in the energy sector to ensure energy security. The investment is also seen as a way to stimulate the national economies after the downturn brought on by the pandemic. The demand for floating power plants remains strong and is expected to grow gradually in the coming years.

Segment Analysis

The global floating power plant market is segmented into type, capacity, and region. The floating power plant market is segmented into gas turbine, solar, wind, nuclear and others based on type. Wind energy is leading in this segmentation since offshore wind energy has been highly developed and is the most widely used type of floating power plant. Offshore wind energy has seen substantial government investment, primarily by the European Union (E.U.), since European geography is uniquely suited to the construction of offshore wind energy. Other forms of floating power plants, such as solar, gas and nuclear, are comparatively less developed and hence, wind maintains a dominant presence in the market.

Geographical Analysis

Europe is leading in the global floating power plant market. Europe accounts for the largest market share, primarily due to major investments in renewable green energy and major floating power plant projects currently under construction in the region. The geography of Europe makes it favorable for offshore energy generation. The shallow water found along the entire northern coastline of Europe with favorable high winds from the North Sea makes it ideal for energy generation from floating power plants.

The European Commission (EC) is investing nearly US$ 800 billion through 2050 to increase floating power plant generation capacity from 12GW to more than 300GW by 2050. Some of the largest floating power plant projects are currently under construction in Europe, particularly in Denmark, Norway, UK and Sweden. The Hornsea Project One in the UK is currently the largest floating power plant project in operation, with a capacity of more than 1200 MW. More than 50 floating power plant projects are in operation in the Baltic Sea and the North Sea.

Some of the largest floating power plant projects are currently under construction in Europe, particularly in Denmark, Norway, UK and Sweden. Oceans of Energy, a joint venture between several major European energy companies, is constructing a floating solar power plant with a capacity of 3MW off the coast of Belgium. Due to substantial investment and various ongoing and planned projects, the European region is expected to retain the largest share in the global floating power plants market in the coming years.

Competitive Landscape

The global floating power plant market is competitive due to the availability of various floating power plants such as wind, natural gas and solar that cater to different energy needs. Some of the players contributing to the market's growth are The State Atomic Energy Corporation ROSATOM, General Electric, Siemens AG, Wärtsilä Corporation, KYOCERA Corporation, Mitsubishi Corporation, Caterpillar Inc., MAN Energy Solutions SE, Ciel & Terre International and Yingli Green Energy Holding Co Ltd. The major market players adopt strategies like new product launches, technological innovation and collaborations, contributing to global growth in the industry.

The State Atomic Energy Corporation ROSATOM

Overview: The State Atomic Energy Corporation ROSATOM is a state-owned Russian engineering company that designs and constructs nuclear power plants, nuclear fuel elements, mineral exploration, radioisotopes as well as research into advanced materials and functions. The company also designs wind turbines. The company was founded by merging many government nuclear industries and the federal atomic energy ministry. The company employs 276,000 people and operates 15 manufacturing units throughout Russia. The company's nuclear power plants are under construction in 16 countries globally. The State Atomic Energy Corporation ROSATOM was founded in 2007 and is headquartered in Moscow, Russia.

Product Portfolio

Akademik Lomonosov is the company's floating nuclear power station. It has two KLT40S nuclear reactors with a combined output of 70MW electric or 150MW thermal. The plant was under construction from 2010 to 2019.

Key Developments:

In May 2020, The State Atomic Energy Corporation ROSATOM announced that the Akademik Lomonosov had started full commercial operation. After construction, the floating nuclear power station was towed from Murmansk in western Russia to the eastern town of Pevek, where it was deployed on a special barge. The floating nuclear power plant is to provide electricity and heating for residents in remote areas along with mining operations in the far east.

Why Purchase the Report?

Visualize the composition of the floating power plant market segmentation by the type, capacity and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the floating power plant market by analyzing trends and co-development deals.

Excel data sheet with thousands of global floating power plant market-level 4/5 segmentation data points.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the critical product of all major market players

The global floating power plant market report would provide access to an approx.: 51 market data tables, 51 figures, and 210 pages.

Target Audience 2022

Floating power plant manufacturers

Power generation equipment manufacturers

Energy companies

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals