Solar power is expected to be the fastest growing power generation technology next year while energy storage is set to soar in Asia, according to a report by market research and consulting group Frost & Sullivan.
While coal remains widespread and a key fuel source for base-load power generation in Asia, solar power is expected to be the fastest growing power generation technology in 2016, according to the report. By the end of 2015, the annual solar power capacity additions in the region is expected to reach 25.6 GW and increase up to 33 GW in 2016, with an annual growth rate of 28.9%.
The Asia Pacific region will continue to remain a strong market for solar power with demand led by China, India and Japan, Frost & Sullivan says. This positive growth will result in strong investments from the private sector both in the upstream and downstream segment of the solar industry value chain.
As the need for the integration of renewable energy into the power grid grows, Asia will emerge as dominant region for energy storage, according to the report. That need is expected to drive significant interest in community and grid-scale energy storage solutions next year, particularly in Japan, China and South Korea. Australia and Japan are set to become the key markets for residential energy storage during in 2016.
Likewise, grid investment, including smart grid, is set to reach some $126 billion in the region next year, led mainly by China at $78.3 billion, followed by India and Japan at $15.4 billion and $12.6 billion, respectively.
"Different sectors attract T&D investments in these countries, noted Suchitra Sriram, program manager, Energy & Environment at Frost & Sullivan, Asia Pacific. Smart Grid would be the main industry that would attract significant investments from countries such as China, Japan and Australia.