Renewable energy development will shift to developing countries in 2016

Compared with the average size of photovoltaic power plant construction projects, it is 64MW in South America, 45MW in the United States, 11MW in North America, and 3MW in Europe, with a large
gap between developing and developed countries.
Land search is difficult compared to the Sahel region of West Africa, which reaches 25MW
in Central America.
Under this premise, R&D projects in developing markets will become the main body of public business, mainly commercial electricity supply in developed countries
.

In particular, the return on investment of projects in developing countries is higher
than that of developed countries.
For example, the average return of photovoltaic power generation projects is 10.
3% in Africa, 10.
4% in the Middle East, 8.
4% in Asia and 6.
4%
in North America.
In Europe, development projects are small and incentives in the investment sector are low, except for financial leverage, where returns are only 4%.

For developed countries, the return on investment of wind power development projects has great potential
to grow.

Renewable energy development will be transferred to developing countries

An important factor in the shift of renewable energy development from developed to developing countries is the sharp decline
in electricity demand in Europe and the United States.
In Europe and the United States, most of the photovoltaic power generation built in the future is expected to be converted
to aging thermal power and coal power generation equipment.
Electricity demand in developing countries is expected to increase
.
(In 2013, 1.
2 billion people worldwide lived without electricity
.
) ）

In developing countries, high targets have been set for the introduction of renewable energy
.
China has set a renewable electricity share of 50%, and Mexico is expected to reach 40%
by 2035.
In addition, in India, wind power company Suzlon acquired five peer companies to accelerate the expansion of related businesses
.
In the pursuit of high goals, there are concerns about low economic competitiveness, but these countries are expected to open and install photovoltaic power generation systems in their own countries, and industrial cultivation is also a reality
.
In addition, in the Middle East, photovoltaic power stations have vast land, and the remaining electricity is also expected to be exported
.

In developed countries, the commercial risk of renewable energy introduction is high
.
Coupled with political risks such as corruption, it is not uncommon
for the government to change its policy.

Hareshu Pateru, CEO of Mercatus, pointed out that renewable energy research and development areas are relatively scattered, the technology involves a wide range of aspects, the operation is more complex, and the business risk is more difficult
to grasp.
Energy companies that digitize their business processes are expected to gain a competitive advantage
.
Perhaps this will also be a great blessing for success in 2016
.