Utility Solar PV EPC Market Analysis

Utility Solar PV EPC Market Analysis

Favorable regulatory incentives, cost competitiveness, and reforms to support large-scale renewable integration will stimulate the deployment of > 200 MW capacity in the utility solar PV EPC market. In addition, major companies are installing solar PV systems to increase their total renewable energy percentage across the globe. For instance, in 2021, STEAG Solar Energy Solutions received an EPC contract for a solar project in Sicily. The total installed capacity of the project is nearly 700 MW and will feed over 1,400 GWh a year.
 

> 50 MW to 200 MW segment witnessed an annual installation of over 26,000 MW in 2020 and is estimated to grow at a CAGR of over 10% through 2030. Extensive resource availability, cost competitiveness, and increasing capacity potential will continue to drive the industry over the next decade. As per the International Renewable Energy Agency (IRENA), the industry is expected to experience around six-fold growth in the coming ten years, recording a cumulative global capacity of approximately 2,840 GW by 2030.
 

Rising electricity demand across developing nations along with stringent regulatory norms in the developed regions to overcome sustainable energy targets will accelerate the adoption of advanced technological solutions. For instance, in June 2020, Trina Solar launched a high-power smart PV solution, TrinaPro Mega. This module features a power output of more than 500 W along with an improved performance of the overall system, which reduces the Levelized Cost of Energy (LCOE) and delivers an optimized solution in downstream systems.
 

The introduction of regulatory measures including credits, rebates, feed-in tariffs, and incentives for suppliers have created a favorable scenario for panel manufacturers. For instance, the Department of Energy (DoE) has accelerated its utility-scale solar cost target by five years and infused a new goal of minimizing the current cost of 4.6 cents/kWh to 3 cents/kWh by 2025 and 2 cents/kWh by 2030. The declining panel cost and a high rate of technology adoption will favor the business growth of PV EPC contractors.
 

In addition, the industry is favored by stringent norms and regulations designed to limit the overall GHG emissions released by conventional sources. For instance, Germany has stated that it targets to reduce carbon emission by below 55% by 2030. Government initiatives and commitments to minimize the carbon footprint by delivering efficient, clean, stable, and reliable power to consumers will further drive the utility solar PV EPC market statistics.
 

Asia Pacific utility solar PV EPC market is estimated to surpass USD 190 billion by 2030. Favorable norms, incentives, and targets of various countries to upsurge the sustainable energy mix will drive the business landscape. An increasing number of solar farms favored by public & private investments of major associations will foster industry growth. Furthermore, increasing demand for centralized power networks along with increasing power outages across rising economies will further sway the industry outlook.
 

Australia utility solar PV EPC market will witness growth owing to the large-scale PV deployment and adoption of renewable power sources across the grid. In addition, state initiatives including feed-in tariff schemes and regular renewable energy auctions are major factors driving industry growth across the country. Furthermore, elevated electricity prices and benefits & decreasing costs of renewable technology have accelerated large-scale solar PV deployments. The government is further planning to digitalize its solar PV generation through the integration of software with solar technologies.