The global cumulative installed capacity of bioenergy is expected to reach 165.1 GW by 2025 — up from 87.6 GW in 2013. That’s according to a newly released report from research and consulting firm GlobalData.
The company’s latest report* states that the world’s major bioenergy markets — namely the US, UK, Germany, Brazil, India and China — all witnessed growth over the last decade, except for the US, which saw a falling trend in annual capacity additions during 2007 to 2014.
“The annual installation of bioenergy capacity globally peaked in 2009 at 6.9 GW, due to increased installations in most key bioenergy countries during that year, and considerable installations in several other countries as well,” said Harshavardhan Reddy Nagatham, GlobalData’s analyst covering alternative energy.
“This was followed by a slight decline in 2010, which can be attributed to the drop in capacity additions in the Americas and Europe as a result of the financial crisis.”
Nagatham believes that as more countries start adopting bioenergy — thanks to increased interest and state promotion — annual capacity additions will rise after 2015. However, he suggests that annual installations worldwide will not return to 2009 levels until 2021.
GlobalData identified the major driver behind the successful deployment of large-scale bioenergy plants: government support, particularly renewable energy mandates and financial incentives such as subsidies and production tax credits. Furthermore, he notes, environmental regulations to reduce emissions are discouraging the use of fossil fuels for power generation — meaning that bioenergy has an additional advantage as a source of renewable energy.
“Waste management practices — such as composting and land filling — indirectly support bioenergy generation,” Nagatham explained. To that end, many industries have set up bioenergy facilities to handle their process waste, he added.