Global Hybrid Power Solutions Market 2023-2030

Global Hybrid Power Solutions Market 2023-2030

Global hybrid power solutions market is expected to grow at a CAGR of 15.3% during the forecast period. The major factors contributing to the growth of the market include the increasing demand for renewable energy sources and rapid industrialization across the globe. As per the International Renewable Energy Agency (IRENA), China’s total operating solar PV capacity reached 175 GW in 2018. By 2020, the target for solar PV capacity is expected to be between 210–270 GW.

As per the IRENA, Japan solar energy capacity reached 55.5 GW in Japan in 2018. This is led by the most attractive Feed-in-Tariffs (FITs) and utility-scale power plants. Japan’s Government passed a FIT for business users and residential, requiring electric utilities to purchase excess solar power from these users in 2009. In 2012, a new FIT system was started by the government, based on the Renewable Energy Electric Procurement by Operators of Electric Utilities Law. According to the law, the regional electricity operators are required to connect renewable energy generation facilities to their grids and purchase the generated renewable energy at FITs. The growth in the installation of solar panels is supporting the adoption of hybrid power solutions.

Solar hybrid systems integrate solar power from a PV system with another source of energy. Diesel gensets is one of the most common hybrid systems that are used to gradually fill the gap between the load and the power generated by the PV system. Battery storage can be utilized to enhance the performance of the overall system. It ensures that the amount of energy fulfills the demand. In addition, an energy management system can also be used for system optimization as the capacity of diesel gensets is limited and the production of solar energy is inconsistent.

Solar-diesel hybrid system are being most often used in remote areas. These places are usually off-grid and storage, and transport of diesel can be costly. In a poor-grid condition, there is an unreliability in the supply of electricity. As a result, hybrid power solutions control the active power output of PV inverters to gain minimum diesel generators loading constraint. It eliminates the risk of reverse power flows to the diesel gensets at the time of outage events when gensets are the primary energy source.

Segmental Outlook

The global hybrid power solutions market is segmented based on system type, power rating, and end-user. Based on system type, the market is segmented into solar-diesel, wind-diesel, solar-wind-diesel, and others. Based on the power rating, the market is classified into up to 10 KW, 11 KW-100 KW, and above 100 KW. Based on end-user, the market is classified into residential and non-residential.

Hybrid power solutions find significant application in the non-residential segment

Hybrid power solutions are expected to gain significance in the non-residential end-user segment. Significant demand for solar power in the commercial sector and the increasing number of SMEs across remote locations. The number of SMEs in the EU-28 increased by 13.8% between 2008 and 2017. Each new SME that survived over the period 2012-2015 required the birth of 9 SMEs that did not. A significant number of SMEs being operates in remote rural areas owing to the government initiative to increased rural job creation. Hybrid energy systems (HES), which utilize different renewable resources such as wind, solar, biomass, small/micro hydro, with fossil fuel-powered diesel/petrol generator to provide electric power, are well suited for remote rural areas isolated from the grid.

Regional Outlooks

The global hybrid power solutions market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Asia-Pacific is estimated to witness potential growth in the market during the forecast period, owing to the favorable government initiatives for renewable energy sources and rapid commercialization and industrialization in the region. To promote industrialization, government initiatives include Made in China (MIC) 2025 and Make in India. Made in China (MIC) 2025 is a Chinese government initiative which was introduced in May 2015. The initiative includes a series of ambitious state-backed programs launched by the government of China. This is intended to modernize the Chinese economy, leverage productivity, and make innovations that are a major driver for the country’s economic growth. As renewable energy sources, including solar and wind, are most often intermittent, which increases the need to combine with other power sources, including diesel generators and utility grid, to ensure the continuous supply of power. Therefore, increasing industrialization will likely drive the demand for hybrid power solution, as constant power is required in industrial operations.

Market Players Outlook

The major players in the global hybrid power solutions market include General Electric Co., Schneider Electric SE, Siemens AG, SMA Solar Technology AG, and Huawei Technologies Co., Ltd. Product launches and geographical expansion are considered as some key strategies adopted by the market players to increase market share and gain a competitive advantage. For instance, in October 2018, Ceres Power declared nearly $9 million investment in a new, break through production facility in the UK. This new facility will enable the company to initially supply the equivalent of 2 MW of fuel cells annually with the capacity to expand to I0 MW to fulfill the increasing demand from customers. In February 2020, Schneider Electric Solar, the solar business division of Schneider Electric, declared milestone for its latest hybrid inverter, Conext XW Pro, with the recent addition to the Hawaiian Electric Company (HECO) Qualified Equipment List for Grid Support Utility Interactive Inverters and Controllers. This enables the company to increase its market share in residential energy storage solutions.