Increasing Adoption of LiDAR Systems for Wind Resource Assessment Fuels South Africa Wind Power LiDAR Market Growth
South Africa Wind Power LiDAR Market – Scenario 1: Using 100 % LiDAR
The South Africa Wind Power LiDAR market is expected to grow from US$ 4.45 million in 2021 to US$ 5.86 million by 2030; it is estimated to grow at a CAGR of 3.1% during 2021–2030.
South Africa Wind Power LiDAR Market – Scenario 2: Using 75 % LiDAR
The South Africa Wind Power LiDAR market is expected to grow from US$ 3.17 million in 2021 to US$ 3.76 million by 2030; it is estimated to grow at a CAGR of 1.9% during 2021–2030.
South Africa Wind Power LiDAR Market – Scenario 3: Using 50 % LiDAR
The South Africa Wind Power LiDAR market is expected to grow from US$ 2.23 million in 2021 to US$ 2.51 million by 2030; it is estimated to grow at a CAGR of 1.3% during 2021–2030.
The wind energy industry in South Africa is flourishing with the increasing focus on expanding renewable energy capacity. The LiDAR technology is employed in this industry to provide accurate measurements of wind speed and direction, and to control rotor speed and other characteristics, including turbulence intensity, Weibull shape, scale factor, wind compass rose, and wind power density. These factors help wind farm developers in making a reliable decision about the commencement of any project. Hence, LiDAR systems are widely adopted at onshore and offshore sites. Growing investments from independent power producers and public utilities for augmenting the power generation capacities of wind farms are further favoring the wind power LiDAR market growth. In March 2020, South African government launched a 1.6-GW tender for wind capacity under the fifth round of a nationwide campaign for renewables deployment. Moreover, as per the Integrated Resource Plan, 2019, the government has planned to install 14.4 GW of new capacity from renewables; out of the planned total, ~4.8 GW will be set aside for wind power.
South Africa has opened bidding for 12 onshore wind farms with a combined capacity of over 1.6 GW in the November 2021 renewable energy tender. The bidders in the auction includes Irish developer Mainstream Renewable Power secured a bid for 824MW of wind and 450MW of solar projects in the tender. Meanwhile, EDF Renewables has successfully achieved a bidder for 420 MW of wind capacity. In addition, as per the South African Wind Energy Association (SAWEA), 25 projects were aligned to represent more than US$ 3.38 billion of investment in November 2021. Therefore, the growing investments in wind farm projects in South Africa underline a need for the evaluation of wind farms for efficient and optimum operations, which augments the demand for LiDAR systems for wind resource assessment.
Installation-Based South Africa Wind Power LiDAR Market Insights
South Africa Wind Power LiDAR Market – Scenario 1: Using 100% LiDAR
Based on installation, the South Africa wind power LiDAR market is segmented into onshore wind farms and offshore wind farms. In 2021, the onshore wind farms segment led the wind power LiDAR market, accounting for the largest share in the market.
South Africa Wind Power LiDAR Market – Scenario 2: Using 75% LiDAR
Based on installation, the South Africa wind power LiDAR market is segmented into onshore wind farms and offshore wind farms. In 2021, the onshore wind farms segment led the wind power LiDAR market, accounting for the largest share in the market.
South Africa Wind Power LiDAR Market – Scenario 3: Using 50% LiDAR
Based on installation, the South Africa wind power LiDAR market is segmented into onshore wind farms and offshore wind farms. In 2021, the onshore wind farms segment led the wind power LiDAR market, accounting for the largest share in the market.
Vaisala, NRG Systems, Fugro, John Wood Group PLC, HALO Photonics, Windar Photonics A/S, ZX Lidars, Everise Technology Ltd., Meatech Solutions LLP, and Velodyne are among the key companies profiled in the South Africa wind power LiDAR market. Several other players are also functioning in the market, contributing significant revenue shares year-on-year.
Impact of COVID-19 Pandemic on South Africa Wind Power LiDAR Market
The COVID-19 pandemic dramatically impacted the global economy during its peak in 2020. The global crisis has also hampered business activities in the energy & power industry significantly. Growing investments in the renewable energy sector of South Africa make this country one of the key markets for the future growth of the wind power LiDAR market. Before the outbreak of COVID-19, the wind power LiDAR market in South Africa was experiencing substantial growth owing to the growing demand for clean energy sources, with increasing favorable initiatives, and supportive regulatory policies and regulations by governments. Before 2020, significant investment initiatives supported the development of onshore and offshore wind farm projects. Johannesburg, Pretoria, Western Cape, and Durban are the prominent cities in South Africa that held significant potential for wind farms. As per the data published by the South African Wind Energy Association, in 2020, the operational wind projects have resulted in a reduction in CO2 emissions by 53% of the total 12.1 metric tons of annual P50 projection by wind Independent Power Producers. However, the onset of the COVID-19 pandemic slowed down investments in wind farms, thereby limiting their installations, which hampered the wind power LiDAR market proliferation.
During the initial days of the pandemic, the crisis restricted all business deals, collaborations, and partnerships. However, with ease in restrictions and reopening of business units, halted projects came into action. From the second half of 2020, original equipment manufacturers (OEMs) and Independent Power Producers began investing in the development of advanced LiDAR systems, leveraging the demand for a clean source of renewable energy. The pandemic has forced businesses to restructure their business models, focusing on strategies to strengthen their market shares. Therefore, although the South Africa wind power LiDAR market plummeted initially due to the adverse impact of the COVID-19 pandemic and the related social restrictions, it has achieved a strong recovery since 2021.
Government initiatives supporting the revival of businesses and rising investments by government are likely to be the key factors to drive the growth of the wind power LiDAR market in the post-pandemic period. Economic stimulus packages prepared by South Africa mention companies/institutions in the energy sector, especially the renewable energies sector. The South African government has taken several measures to bolster its economy by stimulus packages for instance, in June 2020, US$34.46 billion economic response package was granted by the South African government. On the other hand, the construction projects of new energy facilities in the renewable energy sector were either delayed or halted indefinitely in 2020. Unlike most developed countries, implementing lockdowns in South Africa was challenging, as a huge portion of the population is engaged in informal sector activities for their livelihoods, water and electricity infrastructures are inadequate, and the risks of economic recession were much higher. Thus, the pandemic hampered the economic stability of the country, which lead to the delay and suspension of ongoing wind farm projects. Thus, 2021 was a tough year for various enterprises to recover from the repercussions of the COVID-19 pandemic, which also decelerated the growth prospects of the wind power LiDAR market in South Africa.
However, as per the study conducted by the South African Wind Energy Association, the government of South Africa is estimated to invest in new wind farms, especially in offshore wind projects, which is expected to boost the demand for wind LiDAR from 2022. In addition, in November 2021, the South African government had allocated 12 onshore wind farms to the preferred bidder with a combined capacity of just over 1.6 GW.
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