Floating Power Plant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The floating power plant market is expected to rise at a CAGR of approximately 9% during the forecast period of 2020-2025. Factors such as ability electricity generation in the areas which have limited infrastructure and the ability of the plant to be transported and provide rapid demand for power at specific locations are likely to drive the floating power plant market. However, rough weather conditions such as cyclones and tsunami, which destabilize the floating structures, are expected to restrain the floating power plant market.

Key Highlights

• The renewable segment, due to its ability to produce clean energy, have impact on the world’s changing environmental conditions, is expected to be the largest segment in the floating power plant market.
• The development of technologies such as automation and digitalization in the floating power sector is going to decrease the operational cost of the plants and also reduce the human accidents on site, which is likely to create several opportunities for the floating power plant market in the future.
• Europe held a significant market share and is expected to dominate the market during the forecast period. As of 2019, there are 13 announced offshore floating wind projects globally out of which 9 are in Europe region.

Key Market Trends

Renewable Segment Expected to Dominate the Market

• Floating renewable energy installations majorly includes solar and wind technology to generate electricity. These technologies are mounted on platforms that float on water. Most solar installations are done in stagnant waters such as lake or pond, while wind installations are generally done offshore in the sea or ocean.
• Water bodies cover 71% of the world‘s surface area, and the remaining 29% is cover by land. For the places or countries which have a limited amount of land and increasing populations, these floating renewable energy farms are very beneficial as they are movable, thus being capable of being transported to the place where energy requirement is high and also do not pollute the surrounding air or water in the process.
• As of 2019, the global offshore wind installation was 28,308 megawatts (MW), which was higher than the worldwide installation of 23,629 megawatts (MW) in 2018. The increase in the floating power plant has attracted many global investors who see this as a great and unique opportunity for renewable power generation.
• In 2018, a floating solar photovoltaic (PV) plant was completed by Constructor China Energy Conservation Solar Technology Co., Ltd., and the EPC China Energy Engineering Group Shanxi Electric Power Design Institute Co., Ltd in the Suzhou city in China. The plant has an installed capacity of 70 megawatts (MW), and the solar technology provided in the project is from Ciel & Terre.
• Hence, owing to the above points, the renewable segment is likely to dominate the floating power plant market during the forecast period.

Europe Expected to Dominate the Market

• European countries from several years have concentrated their focus on various new methods to generate electricity because of the limited land; the countries in the region have a significant amount of investments in the floating power plant market.
• Countries in the region agreed to the targets of the European Union for cleaner energy generation and installations to decrease the dependency of nations on fossil fuels, which directly or indirectly harms the environment. This is beneficial for several energy sources such as solar, and wind.
• Total S.A, a French oil major, in April 2019, signed an agreement with the developer Simply Blue Energy and acquired it 80% share of the United Kingdom’s floating wind project Erebus located in the Celtic Sea, in Wales. The floating wind farm is expected to have an installed capacity of 96 megawatts (MW).
• Hence, owing to the above points, Europe is expected to dominate the floating power plant market during the forecast period.

Competitive Landscape

The floating power plant market is moderately consolidated. Some of the key players in this market include Ciel & Terre International, Kawasaki Heavy Industries Ltd, Wartsila Oyj Abp, Equinor ASA, and Karadeniz Holding.

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