Increased Demand for Power Generation
Biomass is a low-carbon, sustainable alternative to traditional fossil fuels that, when burned, produces bioenergy, which is regarded as a clean fuel for energy generation. Growing global energy demand is expected to boost bioenergy production via biomass, which will also assist the growth of the biomass power market. As per the International Energy Agency (IEA), bioenergy power output increased by around 5% in 2019, which is only 1% less than the 6% annual power production rate required to satisfy the 2030 sustainable development scenario goals.
Furthermore, renewable energy generated from biomass has a significant impact on global warming emissions since it reduces the amount of CO2 emitted into the atmosphere. Furthermore, boosting the supply of renewable biomass power would allow to replace carbon-intensive energy sources while reducing global warming emissions dramatically. As a result, rising demand for clean energy generation is likely to fuel expansion in the worldwide biomass power market throughout the forecast period.
Rising Energy & Power Demand
Global energy demand has risen exponentially in recent years as a result of increasing urbanization and a fast-growing global population. The majority of the energy produced around the world comes from fossil fuels, which emit harmful GHG emissions when burned. Biomass, on the other hand, is a carbon-neutral carrier that can make major contributions to lowering greenhouse gas emissions.
The International Energy Agency (IEA) has released a biomass action plan. The plan is intended to promote the use of biomass energy as a source of energy with enormous potential for power generation. As a result, increased energy and power demand is likely to fuel the growth of the worldwide biomass power market over the forecast period.
Restrictions Caused by COVID-19 Pandemic to Impact the Global Market
COVID-19's impact on the global economy is altering on a daily basis. It is proving to be a significant hurdle for the renewable industry, resulting in a raw material supply crisis and probable job losses. Companies in the energy and power industry are facing a number of issues as a result of a drop in electricity costs following the COVID-19 outbreak. Furthermore, the United States is one of the greatest markets for biomass power generation.
The slowing of the country's economic growth has had an impact on the global generation and renewable energy investment. Similarly, during the COVID-19 crisis, there was a greater emphasis on renewable technologies; however, due to labor restrictions, fewer power plants were operational.
As per the Ministry of New and Renewable Energy (MNRE), just 222 MW of solar and 25 MW of wind capacity were achieved in India in March, as all efforts were halted owing to the pandemic. Similarly, the majority of respondents in a survey done by the World Bioenergy Association (WBA) acknowledged the considerable impact of the pandemic on the bioenergy industry, leading to a reduction in investment and the cancellation of new investments in the bioenergy sector. However, due to fewer limitations, the solid biomass sector, including makers of wood pellets, has not seen a significant change in 2020.
COVID-19 has had a significant impact on all businesses around the world. Due to the rapid growth, governments around the world have taken stronger measures for the functioning of industrial plants and offices, resulting in stricter lockdowns. The lockdown had a significant influence on the energy sector, with energy demand falling by 18% to 20% in 2020. Furthermore, the virus had a considerable influence on the bioenergy sector, with a particular emphasis on processed solid biomass like wood pellets, chips, forest residues, and others. The result was a modest decrease in revenues and a difficult position with controlling the cash flow of market participants. However, producers of industrial pellets faced difficulties in obtaining feedstock since the majority of the sector relies on forestry harvesting, which was hampered by national restrictions.
APAC to Lead the Global Market with Largest Share
The Asia Pacific biomass power industry is expected to account for the largest part of the global biomass power market. The Asia Pacific is one of the world's greatest markets for biomass power. Due to the region's growing population and rising per capita disposable income, there is an increased demand for energy. Furthermore, the fast-developing economies in this region are also the world's top polluters. Furthermore, due to the abundance of natural resources in the region, Asia Pacific is expected to grow significantly. Emerging economies like India and Indonesia are expected to grow significantly as a result of proposed government legislation to promote investment in the biomass power sector.