North America Renewable Energy Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

North America Renewable Energy Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The North America renewable energy market is expected to grow at a CAGR of more than 7.2% in the forecast period of 2020-2025. North America is among the leading countries having well advanced sustainable energy technologies and infrastructure. The North America renewable energy industry is being driven by the increasing growth in solar PV due to the decrease in technology cost in the past few years. Also, efforts to meet the rising power demand using renewable energy sources is expected to be significant contributors to the growth of the market. With the commitment of the government to obtain maximum energy from renewable and to reduce carbon emissions, the share of renewable is expected to grow significantly and are driving the renewable energy market further. On the other hand, factors like harsh climatic conditions and the use of other conventional energy are a few restraining factors for the North America renewable energy market.

• Solar energy in North America is expected to have significant growth in the market as North America is trying to generate more share of its energy needs from a renewable source like solar energy during the forecast period.
• United States has a vast offshore wind energy resource and possess a power potential of more than 2000 GW, nearly double the nation's current electricity use. This potential is expected to provide an enormous opportunity to deliver large amounts of clean and reliable electricity to the country’s largest population centers in the future.
• United States is expected to dominate in the North America renewable energy market. United States is focusing on increasing its contribution to the global renewable energy market by up to 30% by the year 2025.

• The solar energy market in North America is mainly dominated by United States. Canada, Mexico, and United States have set various regulatory frameworks and policies to develop their renewable energy from various sources such as solar and wind power. Feed-in Tariffs (FIT) and Renewable Portfolio Standard (RPS) systems are also adopted in the region to endorse the renewable energies.
• The solar energy market in United States is on the rise due to the increasing demand for electricity. Furthermore, the falling costs of solar power modules coupled with the government initiatives to increase renewable shares in the total energy mix, are driving the solar power market in the country. In 2019, the solar installed capacity in North America has reached 70048 MW with a decent growth rate compared to previous years.
• In addition, environmental policies in favor of renewable energy, the expanding investor interest in the sector, and the advanced technologies have also underpinned the solar energy market.
• Some other key factors behind the solar power market growth are the declining cost of solar generation, the advancement in battery storage technology, and grid operators growing expertise is helping to compete with other conventional technologies.
• The solar electricity is now economically competitive with conventional energy sources in various states of United States, including California, Hawaii, Texas and Minnesota as they aim to switch to renewable energy resources. Some states are even targeting for 100% renewable such as Hawaii set a target to have 100% renewable energy by 2045.
• Canada and Mexico have also set some goals for solar energy as both countries have the potential to generate a substantial amount of solar energy. Both countries are working to encourage the use of solar energy in residential, commercial, and industrial sectors. Therefore, in total solar energy is expected to have significant growth in the market.

• Renewable energy is the fastest-growing energy source in United States, showing decent growth from the past few years. Around 9.8% of the growth rate was recorded in the renewable energy produced across sectors in United States in 2018. Renewable energy in United States is about 264504 MW of installed capacity as of 2019.
• Renewables made up about 458.5 TWh of net electricity generation in 2018 in the country. The consumption of renewables is expected to grow over the next 30 years at an average annual rate of 1.8%, higher than the overall growth rate in energy consumption under a business-as-usual scenario.
• Renewables made up 16.8% of electricity generation in 2018, with hydro, wind, and solar making up the majority. The share of renewable energy in electricity generation is expected to rise to 24% by 2030. Most of the increase is expected to come from wind and solar.
• United States also set their capacity targets, which has further fueled the solar market. Thus, the solar power sector is expected to become one of the largest and fastest-growing markets for electricity generation over the forecast period.
• The solar industry in the country employs more than 260,000 people and creates jobs at a rate 17 times faster than United States average. With upcoming and under construction renewable energy projects United States is expected to dominate in the market during the forecast period.

The North America renewable energy market is fragmented. Some of the major companies include NextEra Energy Inc, Canadian Solar Inc., Vestas Wind Systems A/S, Electricite de France SA, and General Electric Co.

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