According to Frost & Sullivan’s recent analysis, the 2020s will be crucial for all the participants in the power industry with an estimated $3.40 T invested in renewables during the next decade.
By 2030, 54.1 % of installed capacity will be renewable (including hydropower), and 37.9 % will be a combination of solar and wind.
Falling costs and renewable-friendly energy policies adopted by several countries in the six major geographies—North America, Latin America, Europe, the Middle East, China, and India—are prominent reasons why solar PV and wind capacity additions are expected to soar this decade, Frost & Sullivan’s states.
Vasanth Krishnan, senior research analyst, industrial practice, Frost & Sullivan noted, “Decentralisation, decarbonisation, and digitalisation are the three key pillars of the global energy transition.”
“The power sector will witness strong growth in decentralisation during the decade, with annual global investment increasing from $53.14 B in 2019 to $92.54 B in 2030. Pressure will continue to build for further decarbonisation within the power system as the rate of adoption of digital technologies increases in both existing and future plants to boost operational performance,” Krishnan added.
Conventional power plant operators will require extreme physical and digital agility to compete with alternative power sources and stay profitable in the longer term.
In this regard, digital solutions will enable conventional thermal power plants to increase operational efficiency and asset utilisation to meet the present and future needs of a smart power grid.
Source: ESI Africa