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Opportunities for Power Electronics in Renewable Electricity Generation
Jan.2016

2015-2021_inverter_market_for_renewable_energy_sources
6 490 €

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Description

couv Opportunities for Power Electronics in Renewable Electricity Generation

Renewable energy sources, namely photovoltaics and wind, offer big and sustainable opportunities for power electronics companies and battery makers.

The renewable energy business is a globally sustainable market

The massive deployment of renewable electricity sources is generating new business opportunities. The demand for PV and wind inverters will remain at high levels. According to Yole Développement’s estimates the annual market for PV, wind and tidal inverters will exceed 152 GW by 2021.

When considering the sustainable development of new electricity generation capacity and the advantages and drawbacks of different renewable electricity sources, photovoltaics (PV) and wind energy are today viewed as the most promising choice for the foreseeable future. Marine energies such as tidal turbines, today at the nascent stage, might represent a promising alternative in the longer term. The opportunities for power electronic players in renewable energy sources are represented by power converters/inverters used in PV systems, wind turbines and tidal turbines. However, as shown in the report, the opportunities for power electronics are not limited to power conversion devices. Power electronic companies can also grow their business by providing additional components needed for PV and wind systems. These include protection devices, busbars and connectors, and components and systems used in associated markets, for example electricity transmission and distribution (T&D), DC microgrids and battery inverters for energy storage solutions.

PV and wind are relatively mature technologies, with a large existing market, both in terms of annual installations as well as in total installed capacity. New PV and wind installations will continue to be driven mainly by individual countries’ objectives to reduce CO2 emissions from electricity generation power plants, for example to reduce air pollution. The record levels for LCOE (Levelized Cost of Electricity) from PV installations, such as the electricity price of $58.5/MWh announced recently for a 200 MW PV power plant to be built in Dubai, clearly show that electricity generated by large PV power plants in some regions can compete with conventional fossil-energy power plants. The economic competitiveness of PV and onshore wind opens the door to a future sustainable market without subsidies.

2015 2021 inverter market for renewable energy sources
 

Technology and cost challenges result in business opportunities for innovative technology solutions

Although photovoltaics and wind are already quite mature technologies, there is still a large untapped potential to increase their performance, reliability and lifetime and decrease the costs of their power electronic components. Photovoltaic and wind companies experience a strong price-pressure environment, making the introduction of an innovation into commercial production challenging if associated with higher costs. A technology innovation must often demonstrate an economic advantage at device level, at system level or at operations and maintenance level. For example, reliable devices not only reduce operation and maintenance costs, but also help to improve the confidence of investors and so lower the cost of project financing.

In some cases policies must be changed first, in order to allow use of new technology, for example 1,500V DC in photovoltaic installations, semiconductor-based circuit breakers used in protection devices and DC microgrids. The changing and country-dependent differences in policy makes the development of global solutions complicated, but can also provide advantage to local players.

Technological innovations are also needed to unlock still untapped market potential, such as that represented by offshore wind. Offshore wind turbines and converters need to reach greater levels of maturity, improve reliability under harsh marine conditions and lower its electricity generation costs, which are significantly higher than in the case of installations onshore.

As shown in the report, innovative technology solutions are actively being researched. These include cooling solutions, protection devices for DC circuits, devices for PV systems based on 1,500V DC, power electronic components and systems that are more reliable in harsh marine environments for offshore wind turbines and tidal turbines.

Existing challenges offer numerous opportunities
 

Synergies in power modules exist: battery electricity storage is coming as an additional opportunity

The decrease in financial state support for PV and wind in most geographical markets combined with growing competition within the industry results in strong economic pressure on power device manufacturers. Indeed, despite a very high volume of components and devices sold the margins are often tight. Various strategies have therefore been developed by power electronic manufacturers. As shown in the report, new technology solutions can be offered, based on the synergies between different applications, especially those based on DC current. These include PV and battery electricity storage, PV and electric and plug-in hybrid electric vehicles charging. New technology solutions are sought to differentiate companies from their competitors by improving performance, cost, lifetime and reliability. Companies like ABB, GE and Ingeteam have also identified the synergy between different renewable electricity sources, and also with battery storage systems, to enlarge their activities into new related markets. Battery electricity storage systems could solve the intermittency issues related to the electricity generated by a large number of PV and wind systems.
 
The offering of the same and similar products in different markets helps to reduce the cost of development and cost of commercialization for new technology solutions. For example the use of “power electronic bricks” such as power stacks helps to easily build complete systems according to different regional specifications, system sizes or customer demands. The development of tidal turbines is another example of how experience gained from installations at sea and from offshore wind turbines can help to develop new products.

Companies like Ingeteam have understood the importance of rapidly increasing their presence in new markets. Therefore they have opened manufacturing facilities in countries with a high potential for renewable energy installations. New opportunities have also arisen for system integrators and companies developing complete solutions for system control and energy flow management.

Synergies between different renewable electricity sources and battery electricity storage reflected in the supply chain 


 

Objectives of the Report

This report’s objectives are to:

  • To demonstrate the sustainability of renewable energy markets, namely those associated with photovoltaics and wind, and related business opportunities for power electronics companies.
  • To identify the opportunities for power electronics companies in renewable energy and evaluate the market for PV and wind inverters.
  • To point out the synergies between different related markets including PV, wind, energy, tidal energy, battery electricity storage, transmission and distribution of electricity, and resulting common opportunities.
  • To provide the overview of the key players and partnerships within the marketplace.

 

Table of contents

Introduction 5


Executive Summary    10


Renewable Electricity Sources    33

> Classification
> Renewable electricity source drivers
Towards 100% renewables
Renewable electricity industry supply chain
> Strong synergies between different applications


PV and Wind Market    45


> PV market 2014 and 2015
> 2015–2021 PV inverter demand (in MW)
> 2015–2021 PV inverter market value (in $ million)
> 2015–2021 wind turbine market (in GW)
> Wind turbine nameplate capacity trends
> Wind turbine converter market value (in $ million)


Photovoltaics    56


> Where are the opportunities for Power Electronics players in PV?
> Opportunities in PV-related DC applications
> Power electronics challenges in photovoltaics – harsh environment
> Hazards related to DC electricity
> DC electricity risk factors
> Less weight, lower volume, less noise
> Innovative cooling approaches
> Power electronics components for 1,500V DC PV systems
> PV becomes competitive in some regions of the world
> Utility companies have understood the importance of PV in energy business
> Distributed vs. centralized PV
> What are the benefits of very large-size PV plants?
> Towards larger PV plants
> Three main stationary PV segments
> PV inverter classification
> PV value chain overview
> Supply chain for PV inverters
> Top 15 Chinese inverter manufacturers

 


 

 

Wind Turbines    91


> Where is power electronics in wind turbine systems?
> Power electronics components in a wind converter
> Three main architectures for wind turbine inverters
> Cost breakdown
> Power transmission lines between the wind farm and grid-connection point
> Onshore vs. offshore wind
> Onshore & offshore wind turbine size and power evolution
> Onshore vs. offshore comparison from the power electronics point of view
> Onshore wind farms
> Offshore wind farms
> Offshore wind farms
> Floating turbines in deep water—the next step for offshore wind
> Onshore and offshore wind maintenance costs
> Power electronics main challenges
> Wind power: regional focus & future trends
> Focus on Europe
> Focus on the USA
> Focus on China
> Focus on other markets0
> Bottleneck between wind resources & electricity demand
> Wind turbine industry supply chain
> Main wind turbine manufacturers location and strategy
> Wind power supply chain: Focus on power electronics


Marine Energy—Tidal Energy Turbines    159


> Tidal vs. wind turbines 1
> Converters for tidal turbines
> Tidal energy turbines market
> Tidal energy value chain


Renewable Electricity Sources and Electricity Storage    168


> Is the intermittent character of PV and wind a real problem?
> Benefits of battery electricity storage for PV and wind generation
> Examples of PV and wind installations with battery storage
> Will energy storage become a “competitor” of wind and PV?
> How batteries for EV/HEV help the larger deployment of PV and wind


Conclusion    180

Companies cited

AE
ABB
Alstom
AMSC
Andritz Hydro Hammerfest (AHH)
Atlantis Resources Limited (ARL)
Bosch
CSR
Danfoss
DCNS
Delta
EDF
Enercon
ENGIE
Enphase Energy
Envision
First Solar
Fronius
Fuji Electric
GE
Goldwind
Hitachi
Hopewind
Infineon

Ingeteam
KACO
Mersen
Mitsubishi Electric
Multi-contact
Nordex
OpenHydro
Schneider Electric
Semikron
Siemens
Sinovel
SMA
SolarCity
SolarEdge
Sungrow
Sunpower Corporation
Tesla
The Switch
TMEIC
Toshiba
Vattenfall
Vestas
Woodward
Younicos

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY FEATURES OF THE REPORT

  • Overview of renewable energy sources, drivers and barriers, and synergies important for companies involved in power electronics
  • 2015-2021 market size (MW and $M) for wind converters and photovoltaic inverters
  • Overview of the main trends and key technology needs in PV and wind markets
  • Identification of business opportunities for power electronics in the photovoltaic and wind industries
  • Focus on tidal energy turbines and associated opportunities for power electronics
  • Focus on battery electricity storage, associated opportunities for power electronics and battery synergies with renewable energy sources
  • Identification of main technological challenges