Biomass Power in the US Industry Market Research Report Now Available from IBISWorld

Requirements for renewable energy at the state level will keep demand for biomass power strong, despite an expected decrease in tax credits from the federal government. For these reasons, industry research firm IBISWorld has added a report on the Biomass Power industry to its growing industry report collection.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friend
Tax credits will help the industry compete more effectively with other renewable energy sources

Los Angeles, CA (PRWEB) January 07, 2013

The Biomass Power industry has grown at a healthy rate in the five years to 2013. The federal government has propelled this growth with the implementation of tax credits through several pieces of legislation, including the American Recovery and Reinvestment Act of 2009, that encourage the expansion of biomass power facilities. Furthermore, the majority of states have enacted renewable portfolio standards (RPSs), which require local utilities to generate electricity from renewable power as a percentage of their total energy portfolio. According to IBISWorld industry analyst Eben Jose, “increased campaigning for green technology also has influenced industry performance by sparking interest in technologies that replace pollutant-generating energy sources, such as coal and gas.” As a result, industry revenue is expected to increase at an annualized rate of 9.5% over the five years to 2013 to total $820.3 million, including an 8.8% jump in 2013.

Federal government assistance and local government regulation regarding renewable energy has led to considerable growth in biomass power projects. The increase in projects reflects a triumph for government assistance in the industry, which normally meets difficulty competing against traditional energy-generation commodities, such as natural gas and oil. The assistance, provided in the form of federal tax credits and RPSs, has boosted biomass-electricity generation and helped it reach a level where it can compete with traditional energy sources. However, federal production tax credits for biomass power are set to expire at the end of 2013, which is expected to hinder growth for the Biomass Power industry going forward. Furthermore, “many states have found that emissions from biomass power generation actually exceed those of coal power generation, which will likely diminish RPSs that directly benefit biomass power over the next five years,” says Jose.

As it stands, the industry has a low level of market share concentration, partly because very few facilities are capable of truly substantial electrical output, and because it sells for so cheap compared with other forms of energy, only a few companies have invested he heavily into biomass energy. However, state and local government assistance is expected to continue to help industry players compete with other energy-generation technologies in the next five years by lowering the cost of biomass projects. Although market share concentration will not likely change significantly over the next five years, firms will be able to expand their operations, reaching a larger customer base. Additionally, the anticipated economic recovery over the next five years will contribute to more robust demand for electricity generators. As a result, industry firms are expected to benefit from the continued push toward renewable-power generation, which will lead to increased biomass-power output. Given these conditions, industry revenue is forecast to increase at a healthy rate in the five years to 2018. For more information, visit IBISWorld’s Biomass Power in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Firms in this industry operate electricity generating facilities (other than wind power and solar power), using biomass (e.g. agricultural byproducts, landfill gas and biogenic municipal waste). Subset of report: 22111C

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


Contact

  • Gavin Smith
    IBISWorld 3
    310 866 5042
    Email