Germany is with a larger renewable energy market than the UK in terms of both capacity and generation. According to IRENA, Germany is designed with 125 GW of renewable power capacity in 2019 compared to 47 GW in the UK.
According to IRENA, the renewable power capacity in 2019 for Germany and the UK are: –
|Power Capacity||Germany||The UK|
|Solar PV||49GW||13 GW|
The renewable electricity generation in 2019 are: –
|Electricity generation||Germany||The UK|
|Wind||127 TWh||64 TWh|
|Bioenergy||55 TWh||36 TWh|
|Solar PV||46 TWh||13 TWh|
|Hydro||17 TWh||6 TWh|
Investment in green hydrogen, energy efficiency, and electric mobility by Germany has also been planned. The UK also announced a 10-point plant for a green industrial revolution as per The Independent, including quadrupling its offshore wind capacity to 40 GW by 2030, supporting up to 5GW of low-carbon hydrogen production by 2030.
Renewable Energy Market in Germany
- One of the leading countries in the world in terms of renewable energy consumption and capacity is Germany with a target of reaching 65% of electricity generation from renewables by 2040.
- Germany generated 256 terawatt hours (TWh) of electricity in 2020 from renewable sources, mainly wind, solar, bioenergy, and hydropower.
- In Germany, the market for renewable energy is expected to grow at a (CAGR) of 3.8% between 2016 and 2020, reaching $18.8 billion in revenues in 2020.
- The main drivers supporting market growth are supportive government policies, efforts to reduce carbon emissions, and increasing power demand.
- The main challenges are changes in feed-in tariffs, grid integration issues, and competition from fossil fuels.
Renewable Energy Market in the UK
- The UK has accelerated its transition to renewable energy with a record-breaking 40% of electricity generation from renewables in 2020, an increase of five percent from 2019.
- In 2020, the UK’s installed renewable energy capacity reached 134.84 gigawatts (GW) and it is projected to reach 217.57 GW by 2025, registering a CAGR of over 10% during the forecast period.
- The UK market is dominated by wind energy followed by solar, bioenergy, hydropower, and other sources, and is also one of the leading countries in offshore wind energy with an installed capacity of more than 13.45 GW in 2020.
- The main drivers for market growth are supportive government policies, efforts to reduce carbon emissions, and increasing power demand.
- The main challenges for the market growth are changes in VAT rates, withdrawal of subsidies for small-scale solar, and grid integration issues.