Global Hybrid Power Solution Market - 2022-2029

Global Hybrid Power Solution Market - 2022-2029

Market Overview

The global hybrid power solution market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Hybrid power systems are intended for both the generation and use of electricity. The solution can range from enormous island networks with hundreds of megawatts to single-kilowatt domestic power sources. Renewable Energy Hybrids are the approach to a dependable, cost-effective and dispatchable integration of renewable energies, accelerating the transition to a clean energy future. By integrating renewable energy sources (i.e., Wind + Solar) and energy storage, competitive green MWhs can be enabled through the plant and system design, software & controls and O&M synergies.

Many hybrid power solutions are stand-alone systems that operate off-grid, not attached to an electricity distribution system. For the times when neither the solar nor the wind system is producing, most hybrid systems deliver power through batteries and an engine generator powered by conventional fuels. If the batteries are low, the engine generator can supply power and recharge the batteries.

Market Dynamics

The global hybrid power solution market is expected to boost with rising demand for decentralized electric supply.

Rising demand for decentralized electric supply

The world is attempting to minimize carbon emissions, transforming the energy sector. Technology will need to step in to provide a reliable power supply as companies push for renewable energies and operations grow increasingly fragmented. The answer is hybrid power plants. Countries, businesses and individuals worldwide have pledged to reduce carbon emissions, with the Paris Climate Agreement of 2015 laying out ambitious targets for the future.

As operators increase their usage of renewable sources, gas is a vital and clean transition technology that helps minimize carbon in power production. The grid system is becoming more decentralized as many small power plants focused on renewable energy enter the system. The hybrid power solutions integrate renewable energy sources, energy storage systems and thermal power generation in a hybrid power plant. Storing surplus energy and instant power top-ups from engine gensets fueled with gas or biofuels can make wind & solar power more reliable.

Renewable energy has become the most inexpensive option to generate electricity in many regions due to its tremendous cost reduction. At the same time, the need for a drastic reduction in carbon emissions, if not a complete reversal, is motivating cities, corporations and utilities to set lofty goals for switching to 100 percent renewable energy. New hybrid energy solutions aided and accelerated this shift to a sustainable energy future. The solutions combine energy storage with flexible engine power plants connected with renewable assets, resulting in significant fuel and cost savings - particularly in remote places like islands and isolated grids where fuel prices are high.

Heavy dependency on the conventional energy generation methods

On the technical side, integrating renewable energy sources into today's power generation and grid infrastructure is a huge problem. While conventional power generation can be easily adapted to demand, renewable energy sources (RES) depend highly on meteorological conditions, making them unmanageable and even unpredictable. Due to the integration of numerous hardware components, the high complexity (planning and operation) necessitates additional interface and stakeholder management measures.

The integration of RES into smaller power systems can be difficult due to low system inertia and the geographical concentration of RES. As a result, the isolation requires a larger reserve capacity and accurate dimensioning of the power system to provide a reliable power supply. With different energy sources in use, the systems need some knowledge. Different energy sources' operation, coordination and interaction must be controlled and can become complicated. Although its maintenance cost is low, the initial investment for installing a hybrid solar energy system is high compared to a solar system.

COVID-19 Impact Analysis

The decreased electricity usage recorded during the pandemic is primarily due to government measures. As the pandemic's mitigation policies got more severe, electricity usage fell. Covid-19 has harmed renewable energy, thrived for years and benefited from rapid development. It has resulted in a low output rate. The COVID-19 pandemic has hampered progress toward renewable energy by affecting renewable energy industrial facilities, supply chains and organizations. Budgets in several countries have been altered and the implementation of new renewable energy projects has been hampered.

On the other hand, renewable energy provides a long-term and environmentally benign energy source. Compared to individual sources, hybridization of energy sources gives a better supply.

Despite Covid‑19 disruptions, India auctioned 8.2 GW of new PV capacity in 2020. Tariffs awarded were 4% lower on average than in 2019, registering the lowest globally. In addition, the government awarded a 12 GW of PV capacity with 3 GW of PV module manufacturing. New types of wind-solar-storage hybrid auctions were also held in 2021, making the systems competitive with coal-fired generators in many states.

Segment Analysis

The global hybrid power solution market is segmented based on type, power rating, application and region.

The potential of solar and wind to optimize energy feed-in and grid stability will boost the market demand

Hybrid power takes advantage of wind and solar power's complementing energy profiles. Consider combining solar energy created during the day with wind energy, typically stronger at night. A hybrid system can optimize energy feed-in, grid stability and capacity factor depending on the location and hourly profile. Customers can also save money and increase energy production by pooling land, grid infrastructure and maintenance services for various assets. The hybrid power solution combines one or more renewable power generation assets with custom energy storage solutions, heat or battery storage, boosting project profitability.

According to numerous renewable energy experts, a hybrid electric system that integrates home wind electric and home solar electric technologies offer several advantages over either single system. In much of the U.S, wind speeds are lower in the summer when the sun shines brightest and longest. The wind is vital in the winter when less sunlight is available. Because the prime operating times for wind and solar systems occur unlike times of the day and year, hybrid systems are likely to produce power when needed. In the U.S, The tax credit for solar PV systems was 30% through 2019, then decreased to 26% for the tax year 2020, then to 22% for the tax year 2021.

Geographical Analysis

High potential of renewable resources in countries like India and China will boost the market in Asia-Pacific

Some of China's biggest state-owned companies are flowing in billions of dollars to create massive projects that combine solar and wind energy storage. The periodic nature of renewables is challenging because it disrupts the conventional methods for planning the electric grid operation. The hybrid projects will allow a more continuous supply of clean power, enabling China to reduce its reliance on coal, a major source of smog and climate-warming greenhouse gases.

Being a peninsula with a tropical climate, India has an ample supply of renewable resources that can help the country reduce its carbon footprint significantly if harnessed to its full potential. Some of the significant factors that limit renewable energy generation are the initial costs, uncertainty regarding its skepticism, and viability revolving around its applicability in the long run. To address concerns, the Government of India has introduced various policies, subsidies and regulations to incentivize clean energy and ease awareness amongst users.

National Wind-Solar Hybrid Policy was introduced by the Ministry of New and Renewable Energy in 2018. The policy aims at establishing a structure based on which large-scale wind-solar hybrid power projects can be promoted. Further, the policy's objective was to optimize and improve the efficacy of the transmission infrastructure and land, migrating inconsistencies associated with the renewable power and help attain better grid stability.

Competitive Landscape

The global hybrid power solution market is moderately competitive with the global brands. Players in the market include General Electric Company, Eltek Ltd, Danvest BV, Huawei Investment & Holding Co., Ltd, PowerOasis Limited, Electro Power Systems SA, Siemens Gamesa Renewable Energy SA, SMA Solar Technology AG, Heliocentris Energy Solutions AG, Vergnet SA among others.

The major players in the market are known to incorporate numerous market strategies to achieve growth in the global hybrid power solution market; these include acquisitions, mergers, product launches and collaborations.

General Electric Company

Overview: General Electric is a high-tech industrial firm engaged in healthcare, energy and transportation. The company operates through its industrial segments, Aviation, Power, Renewable Energy and Healthcare and its financial services segment, Capital. GE also delivers materials science, additive manufacturing, and data analytics solutions. Currently, the company has operations in over 130 countries worldwide.

Product Portfolio:

FLEXINVERTER: It brings GE's technology and system integration capabilities to provide a complete solar & battery energy storage power conversion solution. The platform provides a solution that can help reduce CAPEX, OPEX and to ensure reliable plant performance.

Key Development: In 2020, GE Renewable Energy agreed with Helios Energy to deliver 2 energy storage systems integrated with solar arrays for the Lenox Solar / Energy Storage project in NY. The project allowed dispatchable renewable energy penetration into the grid, enabling power in New York state with reliable renewable energy.

Why Purchase the Report?

To visualize the global hybrid power solution market segmentation by type, power rating, application and region and understand key commercial assets and players.

Identify commercial opportunities in the global hybrid power solution market by analyzing trends and co-development.

Excel data sheet with numerous data points of hybrid power solution market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Type mapping available as excel consists of key products of all the major market players

The global hybrid power solution market report would provide approximately 61 tables, 56 figures and almost 208 pages.

Target Audience 2022

Service Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Renewable Energy Companies

Storage Energy Companies

Research Professionals

Emerging Companies

Manufacturers

Distributors