Shore power, also known as cold ironing, allows berthed ships to shut down their auxiliary engines and plug into land-based electrical grids or renewable energy source. This helps reduce emissions from berthed vessels. Shore power systems provide electricity to vessels such as tankers, container ships, roll-on/roll-off (ro-ro) and ferries while docked at port. Installing shore power enables ships to turn off diesel engines and instead receive power from the local utility grid or renewable sources. The use of shore power can help minimize emissions of sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO), and particulate matter (PM) from berthed vessels. Several ports across major economies have installed shore power facilities to reduce emissions from ships.
The shore power market is estimated to be valued at USD 2.25 Bn in 2024 and is expected to reach USD 4.51 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 10.44% from 2024 to 2031.
However, some regions are still posting strong Shore Power Market Growth. The North American market continues to witness considerable investments, driven by the Inflation Reduction Act that provides tax credits for shore power systems. Ports on the western seaboard are proactively mandating shore power to reduce emissions. This has made North America the fastest growing regional market currently. Similarly, governments of Japan and South Korea remain committed to their port decarbonization goals through regulatory pushes and funding support.
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