The renewable energy market in West Europe is expected to grow at a CAGR of more than 6% during 2020 - 2025. The increasing power demand in different countries of the region is the primary factor for the estimated growth of renewables. With the continuous pressure from the European Union, the nations are planning to decrease the greenhouse gas emission by reducing their reliance on fossil fuel-based power generation, which is also a major driving factor for the growth of the renewables. Whereas, due to the COVID-19 outbreak in 2020, there can be a halt or delay in the ongoing projects, which, in turn, is expected to hinder the growth of the market studied.
- Wind energy is expected to witness significant growth during the forecast period, owing to the upcoming projects in the West Europe region.
- In 2018, with its Energy plan, France planned to triple the onshore wind power capacity and five folds its solar energy by 2030. The goal is expected to create vast opportunities for wind energy market players.
- France is dominating West Europe with 53 GW of installed renewable energy capacity in 2019 and is expected to continue its dominance during the forecast period.
Key Market Trends
Wind Energy to Witness Significant Growth
- The United Kingdom is leading the region in terms of offshore wind energy with an installed capacity of 9945 MW in 2019. With several ambitious projects already in the development phase, the government is aiming to reach 20000 MW by the end of 2030.
- Moreover, in 2018, wind provided 85% of Ireland’s renewable electricity and 30% of the total electricity demand of the country. With an ambitious aim, the country is aiming to increase its share further.
- In 2020, the French government approved 35 onshore wind projects with a total capacity of 750 MW. The projects are expected to drive the wind energy market during the forecast period significantly.
- After the successful installation of East Anglia One offshore wind farm with a capacity of 714 MW in 2020, the United Kingdom government is all set for the development of East Anglia Two and East Anglia Three with capacities of 900 MW and 1400 MW respectively.
- With a vast scale potential in offshore wind energy, West Europe is expected to witness considerable growth in the forecast period.
France to Dominate the Market
- In 2020, the French government published the official decree for the national energy plan “the Programmation pluriannuelle de l’énergie” (PPE). With this, France is aiming to install 20.1 GW of renewables generation capacity in 2023 and 44 GW by 2028.
- The installed capacity of wind energy in France has increased from 10 GW in 2015 to 16 GW in 2019. With upcoming projects, significant growth is expected in the forecast period.
- In 2020, Total SA was awarded several solar power generation projects with a total capacity of around 135 megawatts (MW). The projects are expected to be operational in the forecast period.
- In 2020, the French government approved more than 250 solar projects, adding nearly 1000 MW of renewable energy in the forecast period.
- France has dominated the market of renewable energy in West Europe, with 40 GW installed capacity of renewable energy in 2015 and 53 GW in 2019. With upcoming projects, the country is expected to dominate the market in the forecast period also.
The West Europe renewable energy market is moderately fragmented. Some of the major companies include Renewable Energy Systems Ltd, Vestas Wind Systems A/S, Electricite de France SA, Siemens Gamesa Renewable Energy SA, and Engie SA.
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