Offshore hydropower market size is anticipated to witness significant growth over the forecast period. Hydropower market size was estimated to account for more than 16% of the overall power production in 2015 and is likely to grow at CAGR of over 3% from 2016 to 2023.
Clean energy offered by these systems accompanied by ability to handle base load demand is anticipated to drive offshore hydropower market growth. Non intermittent flow of electricity offered by production plants is likely to surge the industry demand from 2016 to 2023. In addition, it also allows plant operators to have excellent control over the energy production. Rising awareness regarding conventional energy might positively impact the industry growth. Furthermore, increasing carbon footprint is likely to boost offshore hydropower market size over the forecast period.
Hydropower plants can be categorized on the basis of production capacity such as small, large, Pico-hydro as well as micro plants. Plants with more than 30 MW of production capacity are called large plants. Small production plants are the ones having production capacity ranging between 100 KW to 30 MW. Energy generation plants having production capacity less than 100 KW fall under Pico and micro power plants.
Large systems are further segmented into diversion plants, pumped storage plant and impoundment plants. Impoundment plants are expected to be the most commonly used ones. In addition, it involves construction of dam. Pumped storage are the plants used mainly during peak power demands and also involves construction of reservoir. Diversion plants are also known as run-of-river hydro.
Furthermore, it does not require any extra construction such as a dam or reservoir. It is anticipated to be the most favored technology for power generation. The large production systems are anticipated to pose derogatory impact on wild life and on environment during flood situations if not constructed properly, might negatively impact the industry growth. Large number of permits required for construction is likely to hider the industry demand. In addition, high financial requirement for installation of these systems might pose as challenge to the industry growth over the several upcoming years. Pumped-storage hydropower plants likely to increase in significance owing to energy storage advantages. Micro and small hydro systems are anticipated to witness highest growth owing to high facilities furnished by the setup. Proliferating demand for decentralized electricity production globally might drive the industry growth over the several upcoming years.
Tidal power turbines market offers functioning similar to operating principle of horizontal axis wind turbines. Tidal current generates a torque on the rotor that is used to propel a step-up gearbox; this in turn is likely to drive the asynchronous generator and thus results in energy generation. Power electronics implied in these systems are expected to regulate the power quality.
Asia Pacific, in particular India and China offshore hydropower market is expected to witness substantial growth. The surge can be attributed to increasing power demands across the region over the several forthcoming years. The region was expected to possess highest hydro electric production capacity in 2013. Increasing regulatory initiatives towards adoption of green technologies for energy production is likely to drive the industry growth over the forecast period.
As of 2013, China hydropower capacity was estimated to be more than 280 GW and is expected to experience high growth prospects with respect to offshore systems. Europe is likely to experience massive growth owing to presence of large number of industry partners in the region. Favorable regulatory policies regarding construction of these systems are likely to drive growth from 2016 to 2023. North America is expected to witness considerable surge in the industry demand for these systems. The spur in the region can be subjected to rising investments in installation of these systems over the forecast period.
Key industry participants accumulating significant offshore hydropower market share include Iberdrola, First Solar, Bronzeoak Philippines, Vattenfall, Calpine Corp, NextEra Energy, Siemens, Alstom, China Yangtze Power, RusHydro, LDK Solar, Suzlon Energy, E.ON and Hydrochina International Engineering among others.