green-eneregy-news.com   July 6 08
NO GLOOM IN GREEN ENERGY.
It’s really unfortunate. The queasiness on the streets about the state
of the US may be unnecessary. High gas prices, the continuing war in
Iraq, sinking home values, the bearish stock market, job layoffs, the
credit crisis, abysmal auto sales – all bad news that might not have
to be there.
This I know with certainty: Most people in the US don’t read this
publication (nor likely others like it.) If they did they’d know that
at least one sector of the economy is doing remarkably well – the
green energy sector, the industry revolving around clean, efficient
and renewable energy. If those millions of nonreaders knew how well
that sector is doing there might be less pessimism about the future.
The press release accompanying a new report from the United Nations
Environment Programme (UNEP) says this about the sector, “UNEP study
says clean energy investments charge forward despite financial market
turmoil.†The report “Global Trends in Sustainable Energy Investment
2008″ speaks of worldwide investment with the US playing a strong
role:
— New global investment in green energy surpassed $148 billion in
2007, a 60-percent rise from 2006;
— Most of the investment was in the EU and the US, but significant
gains – $26 billion – were in China, India and Brazil;
— Green power accounted for 23 percent of all new power capacity
added globally in 2007: 31 gigawatts of green power were added, about
10 times that of nuclear;
— Total investment in all energies - green and otherwise - is
expected to be $20 trillion by 2030 to meet soaring demand: There’ll
be continued pressure by nations to make sure much of this investment
produces green energy;
— Investment in wind energy reached $50.2 billion in 2007;
— Wind attracted more investment globally last year than any other
non-fossil fuel based technology, including large hydro and nuclear
power. In Europe and the US, wind capacity additions in 2007 on their
own accounted for 40 percent and 30 percent, respectively, of all new
power capacity.
— Global installed wind capacity surpassed 100 gigawatts in March,
2008.
— Solar energy grew at faster rate than wind to reach $28.6 billion
in 2007;
— Solar attracted by far the most venture capital and private equity
investment of all renewables – $3.7 billion – although biomass and
waste-to-energy saw the fastest rate of growth.
— Biofuels in the US had a difficult year in 2007. With US feedstock
costs up and ethanol prices down, venture capital and private equity
investment in biofuels fell by almost one-third in 2007, to $2.1
billion. However, biofuels investment has shifted to Brazil, India and
China.
— Investment in energy efficiency technology reached a record $1.8
billion, an increase of 78 percent from 2006. According to the
International Energy Agency, each $1 invested in energy efficiency on
average avoids more than $2 needed to create new supply.
— North America attracted most energy efficiency investment during
2007, followed by Europe;
— Research & Development spending on clean energy and energy
efficiency was $16.9 billion in 2007, including corporate R&D of $9.8
billion, and government R&D of $7.1 billion.
The report, prepared by UK-based New Energy Finance for UNEP’s Paris-
based Sustainable Energy Finance Initiative, also looks forward.
According to the International Energy Agency (IEA) $20 trillion is
projected to be invested to meet the world’s energy demand in 2030.
With governments increasingly concerned about energy security and
global warming, much of this investment could be renewables and energy
efficiency– a boom for those in the business.
Beyond what the UNEP report has to say, a change in administration in
the US (to either candidate) will spur more government spending on
green energy, helping more to build the already strong industry. Both
candidates are committed to this effort.
Further, state mandates for greener energy as well as taxpayer funding
continue to fuel the industry.
California has published its Climate Change Draft Scoping Plan, which
outlines how the state will achieve greenhouse gas reductions in the
coming years. Savvy businessmen should be looking over this document
for opportunities.
On the other coast Governor Ed Rendell of Pennsylvania has announced
his state’s 2008-09 budget which includes an investment of $665.9
million in alternative energy. Of the total, solar will get $180
million, $165 million will be set aside to encourage alternative
energy projects and $150 million will be available over seven years to
help consumers and small businesses weatherize their homes and adopt
conservation tools and offer tax credits to businesses developing and
building alternative energy projects in the commonwealth. Green
buildings, wind and geothermal energy, will get millions as well.
The proposed state budget also has long term plans to increase the use
of biofuels. As production levels of biodiesel increase, the state
will require the percentage that will be blended into conventional
diesel to also increase. The boost cellulosic development gasoline
must include at least 10-percent cellulosic ethanol once production
reaches 350 million gallons per year. New investments will also be
made in Pennsylvania’s biofuel producers; up to $5.3 million will be
available annually through June 2011 to encourage the production of
ethanol and biodiesel.
Economic downturns are often psychological: bad news begets more bad
news until the news gets really bad. It will take considerable good
news to counter what’s bad now. It seems, though, that the good news
will be coming from the green sector. The sooner people know this, the
sooner the country will recover.
Links:
— UNEP- Global Trends in Sustainable Energy Investment 2008
http://www.unep.org/Documents
Default.asp?DocumentID=538
— California Air Resources Board (CARB) — Climate Change Draft
Scoping Plan
http://www.arb.ca.gov/cc
— Pennsylvania 2008-09 State Budget
http://www.budget.state.pa.us
Leave a Reply
You must be logged in to post a comment.
Recent Comments