News about Solar, Wind and alternative green power technologies

Investment in clean energy remains strong despite the tough recession. Renewable is constantly expanding in most countries.

The past year, 2009, marked the subsequent second year in a row carrying a higher expansion capacity in renewable sources of energy like solar and wind in comparison to gas, coal and nuclear energy. This was published in two reports launched the 15 of July 2010 by the United Nations Environmental & the Renewable Energy Policy Network for the 21st Century.

Alternative sources of energy represent for more than 60 percent of installed energy capacity in Europe and above 50 percent in the United States, in 2009. Experts are suggesting that in 2010 or 2011, the world will generate more energy from clean energy sources instead of fossil fuels.

The published reports give a detailed overview of global green energy trends around the world.

It has been reported that investment did fall by 7 percent in 2009 to a total of $162 billion, in core clean energy sources such as bio-fuel and energy efficiency. There were several sub-sectors of renewable energy that decreased greatly, this includes even solar power. Yet, investment in wind power reaped a record year. The total spending on solar water heaters as well as rooftop solar PV had indeed a strong trend. In General, investment in renewable energy did augment despite the harsh economic conditions.

In China, public and private investment in core clean energy reached a benchmark of 53 percent. They added a total of 37 GW of renewable power capacity, which is a way above any other nation.

On an international scheme, a total of 80 GW of renewable power capacity was installed during 2009. This includes a total of 31 GW from Hydropower and 48 from other renewable sources.

In 2009, China exceeded the United States, and became the largest investor in renewable energy. China’s wind farm installation was the biggest investment in the country. However, world-wide there were many other strong fields of investment in 2009. It incorporates the North Sea offshore wind investment. Moreover, this includes supply of finance used to power electric vehicles technology and power storage companies.

PV installation and wind power reached record figures, with 7 GW and 38 GW, respectively. Yet, there was a slight decrease in total investment in utility-scale solar PV in comparison to 2008. The lower investment was mostly accounted for by a decline in the price of solar PV. Small scale (rooftop) solar PV, on the other hand, expanded and had a record year in investment.

Reports on renewable energy do also portray that countries have effectively adopted means to assure that the clean energy has doubled from 2005 to 2010, and this includes the developing world.

Some related reports were also recently released; REN21′s Renewables 2010 Global Status Report and UNEP’s Global Trends in Sustainable Energy Investment 2010. The UNEP’s report was made public by UN Under-Secretary-General Achim Steiner, UNEP’s Executive Director, and Mohamed El-Ashry, Chair of REN21. The UNEP report was prepared by London-based Bloomberg New Energy Finance. The REN21 report was drafted by a team of authors, which worked together with a global network of scientists and researchers.

In a snap overview, the UNEP report emphasis on different global trends in financial investment in renewable energy. However, the REN21 report covers broader aspects of renewable energy on a worldwide agenda. This includes heating, transport fuel, landscape and power regeneration.

According to Mr., Steiner, the renewable sector has remained resilient against economic turbulence. He also, pinpointed that UN climate convention meeting organised in Copenhagen did not represent a major trigger for sustainable energy in 2009. In today’s situation, there are still large gaps between goals and achievements. However, during the recent five years radical growth in renewable energy has been seen.

Mr. El-Ashry said that policies implemented by some 100 countries accounts for this positive expansion in renewable energy. Moreover, Michael Liebreich who is the chief executive of Bloomberg New Energy Finance said that the current economic downturn shows that the energy sector is very strong and will represent an important sector for the years to come.

Renewable energy sources accounted for a large portion of global energy in 2009, they represented:

• Roughly, 25 percent of global electricity capacity ( a total of 1,230 GW out of a total 4,800 GW of global power produced with the help of gas, nuclear as well as coal)

• An expansion of installed power capacity in Europe by 60 percent and 50 percent for the U.S.

Overview of the Major Highlights in Two Reports: UNEP Sustainable Energy Finance Initiative and REN21.

Currently, private sector in the Oceania and Asia region invested more in green energy than in America. They surpassed America with $40.8 billion to $32.3 billion, in 2009.

In Europe, investment by the private sector fell by approximately 10 percent to sum up to total of $43.7 billion.

There were several economies, which started to invested part of the $188 billion in global green stimulus during 2009; these green stimulus programs have been partly active since 2008. Yet, only 9 percent of the money allocated has been spent as per end of year 2009. The larger magnitude of the money is predicted to flow out during 2010-2011.

In 2009, the first quarter was highly disturbed by the bitter bank crisis. However, renewable energy investment had a better period in the subsequent quarters. The total investment for 2009, reached a total of $162 billion and ranked second, only after record spending in 2008. Also, 2009 energy expenditure was almost 400 percent above the investment in 2004.

A total of 50 GW of renewable energy capacity has been developed with the sum of the $162 billion invested, and this excludes hydro-power. In other words, this shows the steady trend of growth from 40GW that was supplemented in 2008. To put it into a scale: 50 GW is equivalent to the potential output of 75 coal-fired power plants.

Resilience of The Green Sector

The green sector did better than expected despite the economic downturn. It had a share price escalating nearly 40 percent in 2009. In the first four month of 2010, the share prices of clean energy stocks lagged behind with 10 percent. The price of oil has been fluctuating but natural gas and electricity price remained stagnantly low.

However, investment in clean energy for the 1st quarter of 2010 was 50 percent higher than for the first three months in 2009.

Growth in Each Sector

The annual average growth for the period 2005 to 2009 was 51 percent for bio-diesel, 27 percent for wind power capacity, 21 percent for solar hot water and 20 percent for ethanol production. Additionally, geothermal power and biomass used for heating did also significantly expand.

Wind

Wind energy capacity expanded more in 2009 in comparison to 2008. In 2009 total investment in wind energy amounted to $67 billion leading to a rise in its contribution by 56 percent. While in 2008, the investment in wind energy amounted $59 billion which in that year represented 45 percent of the total finance investment in sustainable energy.

The supplemented wind power reached a record high 38 GW, where the majority was installed in China with 13.8 GW, United States with 10 GW and subsequently Spain with 2.5 GW.

In the 1990s, wind power was a source of energy in only a few countries. In 2010 more than 82 percent of the world’s countries use this source of energy.

Solar Energy

Solar PV investment reached a record year in 2009 with $40 billion. The level of solar power connected to the grid has on an average grown 60 percent per annum during the last decade. In 2000 it was only 0.2 GW and as per the end of 2009 it reached 21 GW.

However, during 2009 utility-scale solar power experienced a fall in investment by 27 percent to end up at $24 billion.

The drastic fall in financial investment is associated to various determinants. This includes falling prices for PV products, shortage of bank financing in North America as well as Europe and a temporary freeze on permits to install new solar capacity in Spain, which was the most active market for solar energy in 2008.

Yet, the added solar PV capacity did reach a record high in 2009 with 7 GW. Germany represented almost half of this figure with 3.8 GW supplemented. The other larger solar markets were Japan, Italy, United States, Belgium, and Czech Republic. The previous world leader, Spain suffered from a plunge in installation in 2009 after the government policy cap was surpassed.

Fascinatingly, China did in 2009 make a huge contribution to the renewable market. They produced 40 percents of the world’s solar PV requirements, 77 percent of world’s hot water collector and 25 percent of the world’s wind turbines.

The price of power produced by solar PV has decreased by nearly 60 percent. This is from a top price of $3.50 per watt in early 2008 to a price of $2 per watt.

Nowadays, on a worldwide perspective it is estimated that 70 million households use solar hot water heating systems.

Bio-fuels

Bio-fuel is also growing well these years, in 2008; it ended up third just after solar and wind, having a total investment of $18 billion. However, in 2009, it ended up fourth with only $7 billion invested. On the third place for year 2009, waste-to-energy and biomass was crowned with an improvement from $9 billion to $11 billion.

Yet, the amount of bio-fuel produced is tantamount to an estimated 8 percent of world gasoline production. There are several new bio-fuel producers growing in the Latin America, including countries like Brazil, Ecuador, Colombia, Argentina and Peru.

The major reason why investment in bio-fuel plant declined was because most firms were not operating on full capacity. For instance, in the United States, corn ethanol product was underused and many firms suffered from bankruptcy. Even the Brazilian sugar ethanol industry had some economic shortcomings. In Europe the bio-fuel market experienced a resembling contraction.

Geothermal Energy

In 2009, geothermal was faced with 29 percent decrease in total investment, dwindling down to $2 billion.

Energy Efficiency Technology

A more prosperous sector for 2009 was energy-smart technologies like energy efficiency and power storage which rose with 34 percent to heighten at a total financial investment of $4 billion. It is the first time that energy efficiency starts to attract more venture capital than other alternative technologies.

Facts related to Regions

• Europe remains a large investor in clean energy. However, its total share has fallen from $48.4 billion in 2008 to $43.7 billion in 2009.

• Nowadays, Brazil does practically produce all the sugar-derived ethanol; they are also sustaining their expansion in wind power plants and other types of biomass.

Public Policies – The Engine for Expanding Renewables

In 2010 there are above 100 countries that have introduced some type of policy to support the expansion of renewable energy in comparison to only 55 countries in 2005.

The most widespread target has been to have 15 percent of total electricity supply provided by renewable energy by 2020. In the quest to achieve the goal, several countries have adopted diverse policies to assure that the target is reached.

In the Manufacturing, China, India and South Korea are increasingly showing growing trends as a shift from Europe to Asia is seen.

Interestingly, roughly half of the world’s renewable power capacity is generated by developing countries. In countries like Costa Rica, Indonesia, Thailand, Uruguay, Tunisia, Argentina, Egypt and Kenya the pace of expansion of renewable energy is astronomical, while these are only a few to mention.

There are more than 20 countries in the MENA (Middle East and North Africa) and sub-Saharan African countries, which are active in alternative energy. In the developed world, apart from the United States and Europe, Japan, Canada and Australia are actively engaging in diversifying green technology.

There is already an approximate of 3 million people who do directly work for the renewable energy sector and most of them work in the bio-fuel industry. However, going to indirect jobs that are associated with alternative technology, the figure goes well above the 3 million mark.

Banks are also encouraging the growth of clean energy, the European Investment Bank, World Bank Group, Inter-American Development Bank, Asian Development Bank and a dozen of others are providing financial assistant to leverage the green market.

However, public support to address climate change and assure sustainable energy supply is one of the prime factors facilitating the long-term growth of renewable energy around the world.

Source: Eurekalert, UNEP and UNEP Press Release July 2010