The report analyses the growth and evolution of the North America wind, solar and biopower markets up to 2008 and gives historical and forecast statistics for 2001-2015. This research looks at the market scenarios for these technologies and regulatory policies that govern them. Detailed information on key current and upcoming wind farms, photovoltaic (PV) solar parks and biopower production facilities give a roadmap to this market’s development. This coupled with elaborate company profiles of key market participants give a comprehensive understanding of the market’s competitive scenario.
Boost from government support
The proposed introduction of federal RPS combined with the extension of Production Tax Credits up to 2012 in the US are expected to boost the market for renewable energy in North America. The extension of PTC has brought in financial stability to the US renewables market, which contributes to more than 90% of the North American market for renewable power. The market for renewable power in the continent is expected to grow from a historical CAGR of 2.4% in 2001-08 to a forecast CAGR of 6.85% during 2009-2015. The cumulative installed capacity in the region is expected to increase from 207,767 MW in 2008 to 325,681 MW in 2015.
Offshore wind to open up
Supportive policies by the US government are expected to open up an unprecedented market for offshore wind the region. Traditionally dominated by onshore farms, the share of offshore installations is expected to rise in the North America wind market.
According to GBI Research, the offshore wind market is expected to grow from an installed base of 0.95 MW in 2008 to a projected cumulative capacity of 4500 MW by 2015. With 18 large-scale offshore projects in the pipeline, offshore wind is expected to have an increasing share in the electricity generation portfolio in the region in the coming years. Key hotspots for offshore wind development in the continent include the north eastern part of US, the coast of British Columbia and Great Lakes in Canada.
PV market poised for geographical expansion
The PV market in North America is expected to expand geographically with the introduction of financial incentives and support mechanisms by several new state governments in the US. Establishment of support mechanisms for solar PV development by new states such as Washington, Michigan, Pennsylvania, Oregon, Minnesota and Ontario is expected to drive the geographic expansion of this market in the region and result in the creation of high-growth markets for PV within the US. According to the report, Pennsylvania, one of the potential high-growth states, is expected to post a CAGR of 77.03% during 2008-15 from an installed base of 4 MW in 2008 to 218 MW by 2015.
Infrastructure bottlenecks a problem
Insufficient transmission and distribution infrastructure in North America is expected to hamper the rapid uptake of renewable energy in the region. Utility grids in the region do not have the extensive connectivity required to pace up with the rapid growth in renewable power installations. This is expected to result in a delay in grid connectivity for solar parks and wind farms located in remote areas far from the grid. Construction and upgradation of transmission facilities are often more expensive and time consuming than building renewable power parks.
Human resource crunch
Rapid growth in renewable power installations in North America is expected to intensify the chronic talent crunch in the industry. This is expected to result in poor quality services across the value chain and delay of projects. The market does not have sufficient supply of skilled manpower to cater to the projected increase in demand in the coming decade. Acute shortage of skilled professionals is expected to be a major challenge in key segments such as manufacturing, services and technical consulting. GBI Research expects the US wind industry, which currently employs more than 85,000 people, to experience the most acute talent crunch in the North American renewable energy industry.
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