According to analysis conducted by Wood Mackenzie, the global floating solar market is expected to exceed the 6GW milestone by 2031. This surge in growth can be attributed to the challenges faced by photovoltaic (PV) developers in meeting the escalating demand for solar energy, leading them to explore alternative development technologies.
The market share of floating solar is projected to remain stable in comparison to the overall global solar demand. The compounded annual growth rate (CAGR) for floating solar (FPV) is expected to rise by 15% over the next decade.
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Wood Mackenzie's forecast reveals that 15 countries will surpass 500MW of cumulative floating solar installations by 2031. Notably, Indonesia, India, and China are anticipated to account for nearly 70% of the total FPV demand in 2022.
The analysis highlights that the Asia-Pacific region dominated the floating solar market in 2022, with approximately 3GW of floating solar projects, representing over 90% of the global demand for floating solar during that year.
Several countries, including China, Indonesia, India, South Korea, and Thailand, are actively developing multiple floating solar projects, as indicated by the findings.
China's floating solar project pipeline is expected to experience consistent growth, with cumulative floating solar capacity projected to surpass 13GW by 2031. This represents a 12% CAGR over the next decade, according to the research conducted by Wood Mackenzie.
In Europe, the second-largest region for FPV demand, the Netherlands leads the way with approximately 150MW of floating solar installations. This is followed by France.
The Netherlands boasts the largest FPV project outside of the Asia-Pacific region, accounting for 32% of Europe's FPV market in 2022. The successful launch of the Sellingen floating solar park, which has a capacity of 41.4MW and commenced operations in 2021, has contributed significantly to this achievement.
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Wood Mackenzie notes that Europe's leading market continues to witness the growth of project sizes. This trend underscores the ongoing expansion of the floating solar sector in the region.
Ting You, a consultant at Wood Mackenzie, stated, “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.”
As the demand for solar energy continues to surge and ground-mount options face land constraints, the floating solar market presents a promising alternative, offering new possibilities for the global renewable energy sector.
