Global floating solar market to top 6-GW threshold by 2031: WoodMac, ET EnergyWorld


New Delhi: The global floating solar market is expected to pass the 6-gigawatt (GW) threshold by 2031, as photovoltaic (PV) developers struggle to meet growing solar demand and look to alternate development technologies, said research agency Wood Mackenzie in a press release on Wednesday.

The release added that floating solar is expected to have a steady market share compared to overall global solar demand, with the compounded annual growth rate for floating solar (FPV) expected to rise 15 per cent in the next 10 years.

“Fifteen countries are forecasted to exceed 500 megawatts (MW) of cumulative FPV installations by 2031, with Indonesia, India and China making up almost 70 per cent of the total FPV demand in 2022,” it said.

Ting Yu, consultant at Wood Mackenzie, said that the global solar industry, including PV developers, continue to battle limited land availability and increasing land costs for ground-mount solar projects, which is driving demand for floating installations.

“Despite development costs of FPVs ranging between 20 per cent to 50 per cent higher than comparable ground-mount projects, increased competitiveness in the developer and EPC landscape is helping to drive down costs in the sector,” Yu added.

WoodMac said that the Asia-Pacific market had about 3 GW of floating solar projects in 2022, capturing over 90 per cent of floating solar demand that year. Countries such as China, Indonesia, India, South Korea, and Thailand are developing multiple floating solar projects, according to its analysis.

It added that in China, the floating solar project pipeline would grow at a steady pace going forward, with cumulative floating solar capacity to cross 13 GW by 2031 at a 12 per cent CAGR over the next 10 years.

With almost 150 MW, Europe is the second-largest region for FPV demand, with the Netherlands in the lead followed by France.

“Although it is still a small market in Europe, the trend is positive, and bigger floating PV plants are expected in the near future. After 2025, slow growth is projected as the main spots would have already been developed at this point. In addition, grid constraints and higher LCOE for bigger plants means the technology is not competitive against rooftop PV,” said Yu.

For the US, floating solar CAGR is estimated at about 13 per cent over the next 10 years, added WoodMac.

  • Published On May 24, 2023 at 03:34 PM IST

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