The analysts forecast the global power rental services market to grow at a CAGR of 3.32% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global power rental services market for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The report also includes a discussion of the key vendors operating in this market.
One trend in market is increase in use of gas generators for rental power. Environmental reforms and stringent government regulations to reduce emissions have led to new technology being developed for generators, which involve less fuel consumption while increasing the power output. A recent trend has been the shift to gas power generators. The use of gas produces cleaner power than diesel.
According to the report, one driver in market is increasing power purchase agreements (PPAs). The constant power supply is a crucial necessity for a business, and it is even more crucial in developing countries, owing to rapid industrialization. Supplying power is the responsibility of the respective utility. However, utilities suffer from power deficit due to several factors, such as drought in a country that is heavily dependent on hydropower or the when the addition of power is not in pace with the rate of power needs. In such situations, utilities sign a long-term purchase power agreement with rental power companies to supply power over a period of time. Rental power companies mobilize the required equipment and take care of the operation and maintenance, and the utility only pays for the power that is supplied.
Further, the report states that one challenges in market is rise in distributed energy and microgrids to improve grid flexibility. The increase in the instability of the grid due to inadequate T&D infrastructure is causing massive losses due to power outages. The governments of many countries are focusing on producing cleaner energy and are encouraging the use of renewable energy sources. Distribution generation refers to small-scale electricity generation through the use of generators or renewables at the point of consumption. Distributed generation systems, such as solar photovoltaics (PVs), are gaining popularity due to the reduction in cost and lower emission benefits that they provide, leading to government support for such systems.