Shore Power Market Key Takeaways
- Asia Pacific dominated the global market with the largest market share of 35% in 2023.
- North America is anticipated to witness the fastest CAGR during the forecasted period.
- By installation type, the shoreside segment noted the largest market share of 89% in 2023.
- By installation type, the shipside segment is projected to witness the fastest growth during the forecast period.
- By connection, the retrofit segment has contributed the largest share of 74% the market in 2023.
- By component, the frequency converters segment captured the biggest market share of 34% in 2023.
- By component, the transformers segment shows notable growth during the forecast period.
- By power rating, the up to 30 MVA segment generated the major market share of 64% in 2023.
- By power rating, the low MVA (up to 30 MVA) segment is anticipated to register significant growth during the forecast period.
Market Overview
Shore Power Market growth has been significantly driven by the deployment of fixed shore power systems across major commercial ports worldwide. Fixed shore power systems, also known as cold ironing or Alternative Maritime Power (AMP), allow docked ships to plug into the land-based electric grid to power onboard systems rather than relying on diesel engines. These installations have become a cornerstone of port electrification strategies, especially in developed nations focused on reducing greenhouse gas emissions and improving air quality. Fixed systems are typically high-capacity, integrated into port infrastructure, and designed to serve larger vessels such as cruise ships, container carriers, and ferries.
Drivers
Decrease in low-frequency noise and operating expenses
Marine power that is employed in the electric supply of ships that are docked to the shore is useful in minimizing the noise produced by ships. Shore-side electricity charges all the electrical appliances in the vessel without starting the auxiliary engine, which is used to power cargo pumps, ventilators, communication, and light, among others. This helps with low-frequency noise and vibration, which will allow the crew to save fuel requirements for the ship’s diesel engines.
The shore power market is cheap as costs are reduced when engines are switched off, and in many cases, ships adapting to shore power are given priority. Moreover, the relative fuel price has been equally high at many of the ports, which raises operational expenses. This operational cost can be minimized by the use of shore power installations.
- In May 2023, the Netherlands Ministry of Infrastructure revealed a program to invest USD 150 million to establish shore power facilities for ports across the Netherlands, with the initial phase at the Port of Rotterdam. Shore power plants serve an environmental purpose by improving air quality, decreasing noise pollution, and creating nitrogen space in the port for climate projects.
Increase in offshore mining
Expansion in the shore power market by an increase in offshore mining. Shore power systems can be clean, reliable systems that can be used to supply electricity for offshore mining. Issues arising from mining companies off shores also involve different types of plants and equipment on vessels and offshore platforms. Shore power solutions can be effective methods to conserve power, making offshore mining operations more energy-efficient. This reduces the impacts associated with mining activities and respects the environmental policies in force.
Opportunities
There are significant opportunities in expanding fixed shore power infrastructure to emerging ports and medium-sized terminals, which have traditionally lacked the resources for such systems. The integration of renewable energy sources such as solar and wind into fixed shore power installations offers the potential to create carbon-neutral ports. Investment in digital technologies for load balancing and grid interaction can also enhance the operational efficiency of these systems. Governments and port authorities are increasingly recognizing the long-term cost savings and environmental impact, opening funding avenues and public-private partnerships.
Challenges
One of the primary challenges associated with fixed shore power systems is the high initial investment cost. Infrastructure upgrades including substations, transformers, and specialized connectors can be expensive and time-consuming to implement. Compatibility between ship systems and port power supply standards is another issue that hinders seamless deployment, as different vessels require different voltage and frequency configurations. Additionally, retrofitting older ports poses technical and regulatory hurdles that delay implementation. Limited awareness in some regions further slows adoption.
Regional Insights
North America and Europe dominate the fixed shore power systems segment of the shore power market, led by early adoption, regulatory mandates, and strong investment in port electrification. In the United States, states like California have mandated the use of shore power at ports to meet air quality goals. Scandinavian countries such as Norway and Sweden have also heavily invested in fixed installations, given their commitment to green transportation. In Asia-Pacific, countries like China, Japan, and South Korea are catching up rapidly, deploying shore power across major commercial hubs to reduce port pollution and align with national emissions targets.
Recent Developments
- In July 2024, the Hutchison Ports installed the first Onshore Power Supply system (OPS) at The Port of Barcelona. This system can let the ships buy 100% renewable electricity while being docked and this way greatly reduces emissions by making ships shut down their engines.
- In June 2024, Jawaharlal Nehru Port Authority (JNPA) is estimated to spend nearly INR 100 crore to develop India’s first pilot project of shore-electric-power-supply to eliminate the use of diesel to power ships at the dock. The Chairperson of JNPA, Unmesh Wagh, proclaimed the plan in Mumbai emphasizing that the proposed scheme is a unique first for India’s maritime industry.
- In July 2023, Rotterdam Shortsea Terminals (RST) and the Dutch logistics firm Samskip launched green shore power, new clean shore-powered energy solutions must be offered to vessels to curb CO2 emissions. The initiative has been taken to reach net-zero emissions by 2040 at the Rotterdam Port.
- In March 2022, the international shipping and logistics firm DFDS Company declared a new shore power plan at Vlaardingen terminal, Netherlands. They use renewable power with their diesel generators turned off when the ships are docked, which annually eliminates between 2,100 and 2,300 tons of carbon.