Cleantech investments continue to defy the economic muddle that has seemed to afflict much of the global economy in recent years. A new report that examined the U.S. and international markets over the past decade and looked ahead to show just how many dollars may defy gravity.
According to Clean Edge research, the global market for solar photovoltaics (PV) has expanded from just $2.5 billion in 2000 to $71.2 billion in 2010, for example, representing a compound annual growth rate of 39.8 percent. The global market for wind power expanded from $4.5 billion in 2000 to more than $60.5 billion today.
“This overall trend for clean-tech markets continued to be one of growth and expansion in 2010. Combined global revenue for solar PV, wind power, and biofuels surged by 35.2 percent over the prior year, growing from $139.1 billion to $188.1 billion,” the report says.
Most of the increase came from a doubling in global solar photovoltaic installations. Not all the news was good, as the wind sector slightly fell year-over-year.That’s not as surprise, as the U.S. market dropped by one-half. Much of the increased investment came in the biofuels market at $6.4 billion in 2010 and is projected to grow to $112.8 billion by 2020.
- Wind power - (new installation capital costs) is projected to expand from $60.5 billion in 2010 to $122.9 billion in 2020. Last year’s global wind power installations declined slightly to 35.2 GW, down from a record 37.5 GW the prior year. China, the global leader in new installations for the third year in a row, continued to see an increase with total installations of more than 16 GW.
- Solar PV - is projected to grow from a $71.2 billion industry in 2010 to $113.6 billion by 2020. New installations reached more than 15.6 GW worldwide in 2010, a more than doubling from 7.1 GW in 2009. The level of growth and expansion in solar PV was a direct result of PV prices dropping by more than 30 percent in 2009 followed by an additional 10 percent drop in 2010.
In 2010, U.S.-based venture capital investments in clean technologies increased from $3.5 billion in 2009 to $5.1 billion in 2010, an increase of 45.7 percent, according to data provided by the Cleantech Group.
While falling short of 2008’s record-breaking $6.1 billion total, 2010’s more than $5 billion represented nearly a quarter of all VC activity in the country last year, a new record. According to the report, more than 370 deals in 2010 represents the largest number of financings recorded in a one-year period. Of the 10 largest clean-tech venture deals in 2010, five were for solar, two were for EVs, two were for bio-based materials, and one was for geothermal.
The report also outlines five key trends that will impact clean-energy markets in the coming years:
- Incandescent Phase-Out Lights the Way for Low-Cost LEDs
- Natural Gas Advances as a Powerful Partner for Wind and Solar Energy
- Cleaner Aviation Fuels are Poised for Takeoff
- Low-Cost Green Building Brings Relief – and Sustainability – Around the World
- Innovation Provides Alternatives to Rare Earths
As there appears to be a slight pullback in Europe and the U.S. market remains unstable due to low power and natural gas prices, the 2011 investments will be worth following.
COMMENTARY: The Dai-Ichi nuclear reactor catastrophe of Fukushima, Japan and upheavel in North Africa and the Middle East is going to be a gamechanger, and I believe is going to turbo-charge investments in alternative energy, especially solar and wind. I look for a blockbuster year in 2011.
By the way, Clean Edge is a great resource for renewable energy research. I highly recommend them. I cover green technology in great detail in my blog. So if you are looking for the skinny on greentech, including nuclear, with a lot of hardhitting commentary, click HERE.
Courtesy of an article dated March 30, 2011 appearing in RenewablesBiz
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