Advanced Energy Hits Record Revenue at Nearly $1.4 Trillion – Grew 8%, More Than 3X Overall Global Economy in 2015
Recently, the business group Advanced Energy Economy announced that total revenue for global advanced energy was a record $1.4 trillion in 2015, making the industry twice as big as the airline industry, bigger than apparel/fashion, and approaching worldwide spending on media and entertainment. The U.S. advanced energy market hit $200 billion, nearly double the nation’s beer market, larger than pharmaceutical manufacturing, and closing in on wholesale consumer electronics. In 2015, advanced energy revenue grew 8 percent worldwide over 2014, more than three times the rate of the global economy overall. U.S. advanced energy revenue grew 1 percent over 2014. Growth in the U.S. advanced energy market was impacted by persistent low oil prices in 2015. Ethanol pricing is highly correlated with oil prices. So, while production increased slightly, from 14.3 to 14.7 billion gallons as the federal Renewable Fuel Standard was fulfilled, ethanol revenue dropped 33 percent, from $40.9 billion to $27.3 billion. Without counting ethanol, the U.S. advanced energy market grew at a 10 percent rate in 2015, or four times the growth of U.S. GDP. These findings, along with details by market segment, are found in the annual produced by Navigant Research for AEE. The 2016 edition includes global and U.S. revenue for the industry annually from 2011 to 2015, showing powerful growth over the five-year period.Advanced Energy Now 2016 Market Report “Advanced energy has made stunning progress over the past five years, reaching new heights both globally and in the U.S.,” said . “This vital industry is Graham Richard, CEO of AEE making the energy we use more secure, clean, and affordable, while creating economic growth. AEE and its business members are committed to accelerating this progress by working with state and federal policymakers, as well as the customers who are demanding advanced energy options.”
The report shows that 2015 global advanced energy revenue was 17 percent higher than 2011. The U.S. advanced energy market grew 29 percent since 2011. Specific were:U.S. market findings · Representing 30 percent of total U.S. advanced energy revenue in 2015, led all segments for the second year in a row, reaching $63.6 billion, up nearly 11 percent over 2014, and 50 percent over 2011. This industry segment accounts for improved building envelope, appliance and electronics, and lighting as well as managing energy use with demand response and enabling information technologies.Building Efficiency· Electricity Generation was the second largest advanced energy segment, at $52.3 billion in 2015, and also experienced the second largest year-on-year growth, at 18 percent. · Solar Photovoltaics was up 21 percent, to $22.6 billion. Revenue from solar PV nearly tripled since 2011.
· Wind was up 75 percent, reaching revenue of $8.2 billion.
· Gas turbine revenue was up 14 percent, to $10.5 billion, in 2015.
· Following global trends, U.S. experienced the largest year-over-year growth, 24 percent, reaching $18.2 billion in 2015, led by investments. Electricity Delivery and ManagementTransmission
· Reductions were seen in (down 31 percent), (down 9 percent), and , which was down 28 percent, primarily due to lower prices for ethanol, which track gasoline prices. Sales of hybrid vehicles were also impacted by low gasoline prices, while revenue from Plug-in Electric Vehicles still continued to grow, reaching $4.9 billion in 2015 – seven times 2011 revenue for PEVs. Fuel DeliveryTransportationFuel Production
“Energy storage installations more than doubled in the U.S. last year and the sector is poised to hit ,” 10 GW by 2020 globallysaid . “We expect that energy storage will grow faster than renewable generation as it can act as an alternative for not only peaking generation but also for traditional transmission and distribution investments.”Kiran Kumaraswamy, Market Development Director, AES Storage “The report’s findings closely reflect the significant growth opportunities we see in building efficiency as well as demand response, microgrids and distributed energy storage,” said . “We continue to invest in increased efficiencies and innovation in these areas to create value for our customers, who ultimately benefit from reduced operating and energy costs while contributing to overall grid reliability.”Terrill Laughton, Vice President and General Manager, Integrated Demand Resources, Johnson Controls “We are seeing market growth in building energy efficiency, but also the tremendous benefit to millions of customers around the world,” said “To date, Nest-equipped homes have saved their residents 4 billion kilowatt-hours of energy compared to what they would have with thermostats left at a consistent temperature.”Rick Counihan, Head of Energy Regulatory and Government Affairs, Nest Labs. “There has never been a better time for cost-competitive solar power,” said . “Strong worldwide demand for distributed generation and large scale solar power is being driven by innovative technologies delivering proven value, and by the global imperative to reverse climate change.”Howard Wenger, President, Business Units, of SunPower “Our company is experiencing first-hand the growth trajectory described in this report, and these results drive home the point that wind and advanced energy are cost-effective solutions that makes business sense” said “We are seeing more markets opening up as wind offers competitive pricing and the opportunity to diversify our energy portfolio.”Chris Brown, President, Vestas Americas.