The global power generation projects pipeline is worth $4.46 trillion, according to the "Project Insight — Global Power Generation Construction Projects" by ResearchAndMarkets.com.
Asia Pacific dominates, with a project pipeline (including all projects from announcement to execution stage) valued at $1.99 trillion, followed by the Middle East and Africa with projects valuing $960 billion. The Americas has power generation projects with a value of $852.3 billion, while the pipeline for Europe is valued at $739.5 billion; these projects will provide an additional 2,450 gigawatts of power capacity globally.
Increased industrialization in the developing countries of Asia Pacific and the Middle East and Africa, together with mass urbanization, has increased the demand for reliable energy sources. Global consumption of energy in 2017 reached 13,511 million tons of oil equivalent, according to the BP Statistical Review. Asia Pacific accounted for the highest share with 5,744 million tons of oil equivalent, followed by the Americas with 3,473 million tons of oil equivalent, Europe and Eurasia with 2,948 million tons of oil equivalent, and the Middle East and Africa with 1,347 million tons of oil equivalent.
The global power generation projects pipeline has a large share of projects at the early stages, with 12 percent at pre-planning and 45 percent at the planning stage. Projects at the pre-execution stage (design, tender and EPC award) account for 12 percent of the total, while the remaining 33 percent are in execution. Assuming all projects tracked go ahead as planned, annual spending will reach $863.9 billion in 2020, and reduce to $768.7 billion in 2021.
China has the largest pipeline of power generation construction projects, with a total of value of $473.9 billion, followed by India with $433.2 billion. The United States has a project pipeline valued at $365.5 billion. Asia Pacific accounts for the largest shares of the global project pipelines for nuclear, coal, hydroelectric, geothermal and biomass power generation construction projects. Notably, it accounts for 77 percent of the pipeline of coal power projects.
Europe has the highest value of wind projects, which demonstrates the effect of the Renewable Energy Directive on the EU28 countries in adopting more renewable energy sources. The United Kingdom is the leader in investment for wind projects, predominantly offshore. The highest value power generation project globally is the $35 billion East Anglia Offshore Windfarm Development in the United Kingdom.
The Middle East and Africa region dominates investment in solar power projects, with total pipeline valued at $319.9 billion, reflecting Saudi Arabia's landmark $200 billion SoftBank deal to build the world's largest solar farm. The SoftBank project is intended to develop a generating capacity of up to 200 gigawatts by 2030.
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