The rising demand for power and growing number of energy efficiency mandates are expected to fuel the sales of floating power plant during the forecast period.
The demand for floating power plants is expected to rise due to growing need for clean electricity in various sectors and the insufficient power infrastructure in many countries. Floating power plants (FPPs) play a crucial role as decentralized power sources, offering both high efficiency and stability.
Floating power plants are capable of handling sudden changes in power demand and can start up quickly. These plants are portable and well-suited for seasonal and intermittent operations, contributing to grid stability for different types of renewable energy sources. These factors are expected to have a favorable impact on the industry's development in the foreseeable future.
Floating power plants are referred to as a type of power generator that is present on an existing cargo ship. These can be connected to the national grid, can go overseas wherever required, and are usually self-driven. Further, these are considered to be a potential alternative to land-based power plants as they can fulfill the ever-increasing demand for power, especially in rural and remote areas.
Floating power plants can provide electricity to areas with limited infrastructure, as well as deliver secure power supply in case of floods and earthquakes. These power plants often reduce dust pollution as these are built on the water. As the water surface is relatively open, it can prevent the shade from mountains and trees. These also help in lowering the formation of blooms and algae.
Which are the Prominent Drivers Spearheading the Floating Power Plant Market Growth?
The lack of power infrastructure, the surging demand for clean energy, and the increasing government investments in the energy industry are set to drive the floating power plant market growth in the evaluation period. Also, the low operating costs, high reliability, and high-power density of IC engine-based floating power plants is another significant factor that is estimated to propel the market.
The ongoing implementation of favorable environmental policies that support the adoption of clean fuels for power generation is anticipated to augment the market. Wave, wind, and solar energy are three of the most commonly used renewable sources present on floating power plants for power generation.
Why is Asia Pacific Emerging as an Opportunistic Floating Power Plant Market?
Asia Pacific is estimated to generate the leading floating power plant market share in the evaluation period. The region is expected to accumulate over 40% market share in 2023. The region’s market is projected to expand with a CAGR of 9.2% during the forecast period. This growth is attributable to the increasing adoption of renewable energy sources and the rapid development of infrastructure in various end-use industries in emerging economies, such as India and China.
The rising number of potential projects to develop new renewable energy-based floating power plants is expected to attract various key players to Asia Pacific. Moreover, The ongoing development of innovative technologies, such as digitization and automation in the power plant sector is another vital factor that is likely to bode well for the regional market.
How is Europe Contributing to Growth of the Floating Power Plant Market?
The rising focus of several countries in Europe on the development of novel power generation methods owing to the availability of limited land is anticipated to augment the demand for floating power plants in this region. Additionally, the demand for floating power plants in the region is anticipated to rise with a CAGR of 8.8% during the forecast period. The European Union is also expected to invest huge sums in various development projects in the assessment period.
Countries, such as Italy, the United Kingdom, and Germany are aiming to install new power plants to lower their reliance on other countries for fossil fuels. They are also striving to reduce the effect of harmful gases on the environment by investing in cleaner energy generation projects. For instance,
In April 2022, BayWa r.e. AG based in Germany announced that it is going to start operating a new floating solar power plant which is developed on a quarry lake to lower the country’s dependency on Russian fossil fuels.
Spurred by such aforementioned factors, Europe’s market is expected to thrive at a steady pace in the forthcoming years.
Start-ups in Floating Power Plant Market
Start-ups play a vital role in recognizing growth opportunities and driving industry expansion. Also, their efficiency in converting inputs into outputs and adapting to volatile market conditions is valuable. In the floating power plant market, several start-ups are engaged in manufacturing and providing related services.
Minesto specializes in providing a device for capturing tidal energy. Their solution involves an underwater kite structure that incorporates a horizontal axis turbine, enabling the harnessing of energy from ocean and tidal currents.
Swimsol specializes in marine-grade floating solar power plants for the sea, offering services such as design, installation, monitoring, maintenance, and financing.
Concept Clean Energy specializes in developing floating solar PV projects and providing clean energy services.
The market for floating power plant is characterized by intense competition, as notable industry players are making significant investments to enhance their manufacturing capabilities.
The key industry players working in the market are Wartsila, MAN Diesel & Turbo SE, Upsolar, Burmeister & Wain Scandinavian Contractor A/S, Mitsubishi Corporation, Siemens AG, Ideol, Floating Power Plant A/S, Kyocera Corporation, SeaTwirl AB, Principle Power, Inc., Caterpillar, Inc., Vikram Solar Pvt., Ltd., Ciel & Terre International, Yingli Solar, and General Electric Company.
Some Recent Developments in the Floating Power Plant Market
In April 2023, Wartsila, Hoegh LNG, IFE, University of South-East Norway, Sustainable Energy, and BASF SE secured around EUR 5.9 million in funding from the Norwegian Government.
In April 2023, Wärtsilä renewed its Operation & Maintenance agreement with Geradora de Energia do Amazonas (Gera Amazonas), an independent energy producer based in Brazil.
In August 2021, Falck Renewables SpA from Italy and floating wind specialist BlueFloat Energy from Spain unveiled their joint plan to establish and deploy floating offshore wind farms along the Italian coast.
In October 2020, Wärtsilä and JB Corporation entered into a nine-year optimized maintenance agreement to ensure the operational reliability of a power plant located in South Korea.