Renewable Energy Industry Outlook
The 2022 Renewable Energy Industry Outlook highlights opportunities for growth, as well as challenges and threats. Globally, power generation will continue to attract significant new investment, with significant volumes going to renewable hydrogen production and battery and home energy storage solutions. New technologies and services will also emerge in areas such as electric mobility and grid flexibility services, putting more pressure on businesses to make strategic decisions.
With falling oil and gas prices, renewables will become more expensive. And while some supply chain issues are being resolved, others will continue to plague the industry. In addition, trade tensions could put some projects on hold, and resourcing issues will hamper adoption. However, renewable energy developers will continue to find alternate suppliers, and domestic manufacturers when available.
Despite the cost-competitiveness of renewable energy, a key barrier to adoption is access to modern transmission infrastructure. Offshore wind energy, for example, will need reliable transmission lines to reach customers. While most projects have been stalled due to regulatory hurdles, high-volume transmission lines that integrate with transportation infrastructure could alleviate these problems.
The offshore wind sector is expected to grow rapidly in 2022. But if it is to be successful, it needs to be connected to existing transmission lines. To address this problem, the renewables industry must upgrade and build new transmission lines. In addition, it must improve and expand existing lines. And in order to do that, the DOE has announced an $8.25 billion loan for new offshore wind and solar energy projects.
The 2022 Renewable Energy Industry Outlook
A major source of growth for the renewables industry is jobs. Globally, renewables account for over two-thirds of total renewable energy employment, with China accounting for 42 percent of the global total. Other major sources of employment include the EU, Brazil, and India. The US, on the other hand, is building a domestic industrial base for offshore wind.
why to invest in renewable energy
As the cost of solar PV systems falls, the industry will explore new business models involving solar plus storage. This pair offers operational efficiencies, cost synergies, and the potential to lower storage capital costs. Floating solar PV modules may also be explored, and community solar projects could expand into new markets.
reasons to invest in renewable energy
The global renewable energy market is growing rapidly. By 2022, solar energy will account for over 60 percent of the increase in renewable energy capacity. Two-thirds of this growth will come from large projects, encouraged by government policies in the EU and China. Meanwhile, onshore wind capacity will rebound after slipping in 2021. Offshore wind installations are likely to slow in 2022, as China ends subsidies. Despite the slowdown in offshore wind, China will eventually surpass the United Kingdom and the European Union combined in installed offshore wind capacity.
The industry is also benefiting from a number of other incentives. In addition to tax breaks for renewable energy, the government is easing import duties for materials and semi-finished products. Furthermore, renewable energy projects benefit from preferential corporate income tax rates of 10 percent for 15 years. Moreover, they are offered land rental and tax exemptions.
