FPP is used to meet power demands in areas with limited infrastructure and also capable to providing secure power in the event of floods and earthquakes. The various sources of energy used in the FPPs include oil & gas, solar, wind, hydro, nuclear and many others. FPPs have advantages over land power plants as FPPs are installed on floating structures so they are not dependent on soil quality. FPPs have the ability to relocate based on the requirement of power. These FPPs convert the power generated through the various sources of energy to supply electricity to the areas with less access to proper infrastructure. In the present scenario it is seen that North America is showing a significant growth and the region has high scope for expansion in the FPP market due to its higher economic power and its regulations to focus on clean energy.
The global FPP market is expected to grow with a CAGR of 8.15% during the forecast period 2018-2022.
Europe to grow with highest growth rate FPP market is still growing in the Europe region and it has enormous opportunities of expansion. The region being economically strong has the capacity to introduce FPPs to generate clean energy. Implementation of carbon tax and regulations on reducing emission of greenhouse gases to the environment have provided Europe with huge opportunities of growth. Asia Pacific region is expected to continue to dominate the FPP market due to scarcity of land and growing population leading to increasing demand of power.
Oil/gas FPP to dominate the global market FPPs using oil/gas as source of energy is dominating the global market in the year 2017 and it is estimated to continue to lead the market during the forecast period. The abundant availability of fossil fuels and their non-dependency on weather conditions have resulted in their high market share in the global FPP market.
Solar FPP is expected to show high growth rate during the forecast period due to high adoption of solar energy solutions in the developing and developed countries.
The Underlying Challenges FPPs although has many advantages over land power plants and its usage can reduce global warming effects but it faces many challenges too which are limiting the growth. High capital investment associated with transportation and logistics and installment cost of power plant on floating structures have been major road blocks to the FPP market. Solar FPPs require installment of solar panels which would require most of the surface area to be covered and even floating structures would require large space, this would disturb the operations in the water bodies. Floating structures would restrict the penetration of sunlight through the water surface which would interrupt the photosynthesis thus making it impossible for aquatic plants to survive.