Electrical Equipment / Components & Telecoms

A new study released by research firm GIA found that the global floating PV module market is expected to be 1.6GW in 2021 and 4.8GW by 2026.

Floating photovoltaic modules or floating photovoltaics refer to solar modules installed in floating water bodies, such as lakes, reservoirs and other environments. The floating photovoltaic floats on the water surface, and the embedded solar tracker can follow the movement of the sun, improve the time for the solar modules to receive sunlight, and improve the energy efficiency of the floating photovoltaic system.

The report titled "Floating Photovoltaic Modules - Global Market Trajectory and Analysis" reflects the opportunities and challenges contained in the major changes in the market after COVID-19.

According to the report, the global floating photovoltaic modules market is expected to witness substantial growth in the near to long term. The size of this market is expected to be 1.6GW in 2021 and is expected to reach 4.8GW by 2026, growing at a CAGR of 33.7% during the analysis period.

The Asia-Pacific region is the largest regional market for floating PV modules, accounting for approximately 62.2% of the global total in 2020. The expected size of this market in 2021 is 771.6MW and is expected to reach 2700MW by 2026.

During the analysis period, China's compound annual growth rate was 59.4%, and it is expected to become the fastest growing regional market and become the leading force. Supported by various factors conducive to healthy growth, the Chinese market is expected to develop steadily and become a major regional market for floating PV modules.

Compared with traditional factories, the relative advantages of establishing floating PV module factories will drive the growth of the floating PV module market. Shifting preference for power generation from renewable energy sources such as solar and wind, increasing investment in renewable energy, and various government initiatives to encourage solar power are major factors driving the growth of the floating PV module market.

Generally speaking, a 1MW floating photovoltaic power station will cover nearly 7-10 hectares of water, save 15 million liters of water and generate 1500MWh of electricity. However, the overall cost of floating PV modules is much higher compared to fixed solar modules, which is expected to be a key factor hindering the growth of the floating PV module market. In addition, rising energy demand, expansion of solar installer network, and falling prices of floating PV technology are expected to be factors driving the growth of the floating PV module market.

Floating PV module installation does not require a large area of land, and the cost-effectiveness of floating PV projects will also support the demand for floating PV modules. Floating PV module projects can be built on unused water bodies and this is expected to be a major driving factor for the growth of the floating PV module market.

Countries such as India, China, Germany, the United States and Japan have emerged as solar powers, and the growing solar power, in turn, has contributed to the growth of the floating PV module market, according to the report. There are more than 24,000 man-made water bodies in the United States, which will benefit the development of floating photovoltaics because man-made water bodies are easy to manage, and infrastructure and roads are in place. The exploration of untapped regions such as Russia and Azerbaijan will also benefit the floating PV module market.

The offshore segment by location is expected to dominate the global floating PV module market and is expected to continue to dominate the global market in the coming years. However, strong currents and tides can cause problems or damage floating PV modules.

In addition, higher construction and maintenance costs of seawater plants are expected to drive development in inland areas. The Netherlands is the center of inland floating photovoltaics. The Dutch company GroenLeven owns a huge floating photovoltaic power station in Europe. The company promises to provide stable income to those who are willing to rent places where floating photovoltaic projects can be built.

Floating photovoltaic modules are mainly used in floating photovoltaic power plants (FPV), which are known as the third pillar of the future photovoltaic market after ground power plants and rooftop photovoltaics. At present, among more than 60 countries in the world that are actively promoting the process of floating power plants, more than 35 countries have 350 floating photovoltaic power plants.

It is estimated that the average growth rate of floating solar energy in the next five years will exceed 20%. As such, Asia is expected to account for two-thirds of global demand, especially with the rapid development of key markets such as China, India, South Korea, Thailand and Vietnam.