Research PREVIEW for

Annual Renewable Energy Outlook 2014

Political, Financial and Policy Support

Brightens Outlook for Renewable Energy

Key Highlights

• Renewable energy installations in 2013 saw the continued, gradual shift in

market power to emerging economies, where economic growth and revised

energy priorities will drive a sustained increase in the adoption of renewable

energy.

• The cost of renewable energy has declined dramatically in recent years.

Overall, the cost of solar photovoltaic (PV) modules are estimated to have

dropped by 70% between 2008 and 2013, making solar more competitive

with fossil-fired power and driving accelerated adoption rates.

• Investments in renewable energy have declined in recent years, driven by

falling equipment costs and weaknesses in key regions such as parts of

Europe and the United States.

Source: Frost & Sullivan analysis.

Key Highlights (continued)

• Hydro power growth is increasingly driven by China (72% of new capacity in

2013), however, other key markets include Turkey, Brazil, Vietnam, India, and

Russia. Pumped storage investments in Europe have started to slow down.

• The wind power market is entering a more mature phase following a poor

2013, where weakness in Europe and the United States was only partly offset

by strong growth in China. Global wind capacity will grow from 279 gigawatts

(GW) in 2012 to 814 GW in 2025.

• Forecasts for solar PV have been upgraded further as declining costs boost

investor interest. Reduced policy support in parts of Europe will be offset by

booming markets such as China, the United States, and Japan. The position

of Chinese manufacturers is becoming more entrenched.

Source: Frost & Sullivan analysis.

• Global

Geographical Scope

Technologies Covered

Hydro Power

Wind Power

Solar PV

Concentrated Solar Power

Bioenergy and Waste

Geothermal Power

Marine Power

Aims and Objectives

• To provide an analysis of the key global trends

affecting the renewable energy market for

power generation during the course of the

current decade.

• To provide insight into growth opportunities with

a full analysis of the major markets in the global

energy and power sector.

Scope and Coverage

Source: Frost & Sullivan

34.9

28.3

2.4

4.0

18.6

20.7

2.1

2.9

26.7

23.2

6.1

8.1

5.8

7.6

3.5

5.2

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Share of Global Non-hydro Renewable Energy Capacity Additions (%)

EU

Middle East & Africa

North America

Latin America

China

India

OECD APAC

ROW*

Annual Renewable Energy Outlook: Non-Hydro Renewable Energy Installed Capacity Share by Region,

Global, 2012, 2020, and 2025 2012 2020

Annual Renewable Energy Outlook: Non-Hydro Renewable Energy Capacity Additions by Region, Global,

2012–2025

Year

EU 42.0%

Middle East & Africa 0.5%

North America 21.0%

Latin America 3.3%

China 18.9%

India 5.2%

Other Dev. Asia 2.4%

OECD APAC 5.4%

ROW* 1.4%

EU 29.6%

Middle East & Africa 2.2%

North America 19.7%

Latin America 3.8%

China 26.3%

India 6.4%

Other Dev. Asia 2.3%

OECD APAC 8.3% ROW*

1.5%

EU 25.7%

Middle East & Africa 3.5%

North America 20.1%

Latin America 4.5%

China 25.9%

India 7.4%

Other Dev. Asia 2.8% OECD APAC

8.4%

ROW* 1.8%

Renewable Energy—Regional Balance Shift Excluding

Hydro

2025

Note: All figures are rounded. Source: Frost & Sullivan

*ROW is defined in the appendix section.

Annual Renewable Energy Outlook: Geothermal Installed Capacity Forecasts, Global, 2012, 2020, and 2025

Global geothermal capacity will grow from 11.6 GW in 2012 to 20.7 GW in 2020 and

29.4 GW in 2025. Capacity expansion is largely driven by North America,

Asia-Pacific as well as national and regional markets such as Turkey, Iceland, and

Eastern Africa.

1.6

1.0

0.2

2025 2020 2012

2012

2020

2012 2020 2025

2012 2020 2025

2012 2020 2025

2012 2025

North

America

Latin America

Europe*

OECD APAC

China

Africa

4.4

7.5

10.1

0.6 1.0

1.3

1.7

2.5

3.4

0.0 0.3 0.7

2020 2025

1.4

2.5

4.3

2020 2025

Southeast Asia

3.2

4.8

6.1

2012

Russia

2012 2020 2025

0.1 0.5

1.0

Geothermal—Installed Capacity Map

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

*Europe including Iceland

Section Slide Number

Executive Summary 3

Scope and Coverage 6

Renewable Energy Overview 8

Hydro Power 19

Wind Power 34

Solar Photovoltaics (PV) 49

Concentrated Solar Power (CSP) 63

Bioenergy and Waste 77

Geothermal Power 91

Marine Power 105

Appendix 121

The Frost & Sullivan Story 124

The Full Analysis Features the Following Content

Interested in Full Access? Connect With Us

Chiara Carella +44 (0) 20 7343 8314

chiara.carella@frost.com

Research Authors

Harald Thaler

Industry Director

Energy & Environmental

John Raspin

Partner

Energy & Environmental

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