Category: Reports

IEA Report: Renewable Energy to See Huge Growth Over Next 5 Years

Renewable energy will be even more popular over the coming years, according to a new International Energy Agency report. Over the next five years, the report predicts a 40% increase in the generation of energy from renewable sources worldwide. If that comes to pass, then renewables would generate 1.5 times the amount of energy currently […]

Renewable energy will be even more popular over the coming years, according to a new International Energy Agency report.

Over the next five years, the report predicts a 40% increase in the generation of energy from renewable sources worldwide. If that comes to pass, then renewables would generate 1.5 times the amount of energy currently produced in the United States.

“Renewable energy is expanding rapidly as technologies mature, with deployment transitioning from support-driven markets to new and potentially more competitive segments in many countries,” IEA Executive Director Maria van der Hoeven said.

Of all the renewable energy sources, the IEA report predicts solar power to see some of the biggest increases. According to the U.S. Department of Energy, solar is the most abundant renewable energy resource worldwide.

Solar power already shows signs of unprecedented growth in the United States. The Wall Street Journal reported that twice as many solar panels will be installed this year as last year. Part of the reason for this expected growth is a decrease in the price of panels.

Solar energy is readily available regardless of location, as all 50 states have enough sunlight to generate power for between 850 to 1,200 houses, according to the Energy Department.

Additionally, the price of installing solar panels has fallen dramatically over the past two years, and this trend is expected to continue. The price of a solar panel on average dropped by about 50% over the past year, according to GTM Research.

Government tax credits help explain some of the drop, as federal incentives account now for about 30% of the price of a solar panel, according to the WSJ. In addition, some states offer additional tax credits to drive the cost down even further.

On top of it all, rising prices on fuels such as oil have renewed interest in solar power for diverse uses, including residential electricity and solar water heating. According to a Harris Interactive poll last year, more than half of respondents placed energy conservation as one of their concerns.

Solar is well positioned as an alternative to fossil fuels, as it is readily available and can provide both electricity and heat. Perhaps this is why the poll showed that more than 75% thought the benefits of solar power outweighed any potential risk.

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Renewable energy investments increased 5% to $260bn in 2011

A report from Bloomberg New Energy Finance said that a sluggish economy did not hamper investments in new clean energy projects as they increased 5% to $260Bn in 2011, a record high. U.S. investments in renewable energy moved ahead of China for the first time since 2008, according to the latest data. U.S. projects saw […]

A report from Bloomberg New Energy Finance said that a sluggish economy did not hamper investments in new clean energy projects as they increased 5% to $260Bn in 2011, a record high.

U.S. investments in renewable energy moved ahead of China for the first time since 2008, according to the latest data. U.S. projects saw an investment of $55.9Bn in 2011, up 33% from 2010. China’s investments increased 1% to $47.4Bn.

“The news that the US jumped back into the lead in clean energy investment last year will reassure those who worried that it was falling behind other countries,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “However before anyone in Washington celebrates too much, the US figure was achieved thanks in large part to support initiatives such as the federal loan guarantee program and a Treasury grant program which have now expired.”

In 2011, investments in solar technology increased 36% to $136.6Bn, nearly double the $74.9Bn investment in wind power, which was down 17% from 2010. Biomass and waste-to-energy investments decreased 18% to $10.8Bn, geothermal dropped from $3.2Bn to $2.8Bn, small hydro decreased 25% to $3Bn and investments in marine technology were steady at $0.3Bn.

“The performance of solar is even more remarkable when you consider that the price of photovoltaic modules fell by close to 50% during 2011, and now stands 75% lower than three years ago, in mid-2008,” Liebreich said. “The cost of PV technology has fallen, but the volume of PV sold has increased by a much greater factor as it approached competitiveness with other sources of power.”

The previous year also saw the one trillionth dollar invested globally in renewables since 2004. The largest single type of investment was the asset finance of utility-scale renewable energy projects, which increased from a revised $138.3Bn in 2010 to $145.6Bn in 2011.

Venture capital and private equity investment saw an increase of 4% in 2011 to $8.9Bn.

To read the full report, Renewable Investments 2011.

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More deals of renewable energy in pipeline

The rapidly growing Indian renewable energy sector is likely to witness increased business deal making activities in near future, according to global consultancy Deloitte. “The trend in deal making activities in the renewable energy sector will continue going forward. The increased interest is not only a necessity in order to acquire technologies, but has also […]

The rapidly growing Indian renewable energy sector is likely to witness renewable energy deals 2010increased business deal making activities in near future, according to global consultancy Deloitte.

“The trend in deal making activities in the renewable energy sector will continue going forward. The increased interest is not only a necessity in order to acquire technologies, but has also been on account of attractive valuations after the global financial meltdown,” Deloitte India’s senior director Kalpana Jain said.

Going by estimates, India had seen as many as 14 deals worth US$ 1.1 Bn in the green energy space for the year ended June 2010.

Jain said there is “renewed impetus” in the renewable energy sector, especially in the solar energy segment. “The solar sector is expected to see an increased participation and collaboration especially in the technology and manufacturing space,” she noted.

According to a report by Deloitte, the growing renewable energy industry would supplement the conventional sources of energy such as the oil & natural gas sector.

“At a time, when the country is seeing supply shortage current peak power supply deficit at about 12% the renewable energy sector will complement the conventional sources of energy like petroleum and coal,” Kalpana Jain said.

Even though the renewable energy sector is anticipated to see good investments in the next 12-18 months, the growth trajectory would largely depend on the extent of global economic recovery, the report said.

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