Renewable energy investment picks up
by Ray Block
Surveys by New Energy Finance, Cleantech, Greentech and United Nations all report that despite the world recession, investment in renewable energy rose in the June quarter 2009.
The New Energy Finance consultancy says that investment in the latest three months totalled US$24.3, a return to more positive growth compared to only $13.3 billion in the March quarter.
However, it was still 37 per cent below the quarterly average of 2008. Current trends suggest that total investment for 2009 will be between $95 billion and $115 billion, well down on last year’s record level of $155 billion
Two major developments occurred in the June quarter. One of these was acceleration in asset finance for projects mainly in wind farms and solar parks. The other was in new equity issuance.
US investment in the June quarter was well down, with new build asset finance at only $1.6 billion, down two thirds on the same quarter last year.
New investment in renewable energy companies listed on stock exchanges rose from a revised $133 million in the March quarter 2009 to $2.4 billion in the latest quarter, with Vestas, SunPower and Suntech among the companies raising money in share issues.
However, by far the biggest increase came in asset finance. New build finance of wind farms, solar parks, biofuel plants and other renewable projects rose to $20.5 billion in the June quarter, compared to $11.4 billion in the first quarter.
By comparison with the US, investment in Europe, Middle East and Africa reached $14.4 billion, the highest quarterly figure on record. The biggest problems remain the shortage of debt finance, which is delaying many renewable energy projects.
New Energy Finance estimate that world new investment in renewable energy projects over the next two decades will have to reach $500 billion a year, if carbon emissions are to be brought under control before too long.
More specifically, the UN in the report Global Trends in Sustainable Energy, drawn up for them by New Energy Finance believes that $750 billion needs to be spent worldwide between 2009 and 2011.
The Cleantech investment group and the accounting firm Deloitte say that renewable energy projects by venture capital in North America, Europe, China and India reached $1.2 billion across 94 companies during the June quarter 2009, a 12 per cent improvement over the first quarter.
Although the rate of venture capital is down 44 per cent on the second quarter 2008, there are signs of recovery right across the sector, says research director Brian Fan. He points to recent activity in solar-tax equity, increased M&A levels, as well as billions of stimulus dollars being allocated by governments world wide.
Fan says that the transport related technologies attracted the highest level of venture capital backing during the quarter with $236 billion invested in vehicle technology, $206 billion in biofuel firms and $165 billion in firms involved in battery research.
Solar thermal projects was the leading energy source procured through power purchase agreements in the first half of 2009. New investment tax credits are playing a major role in making new solar thermal, solar PV, and wind projects more economically viable for utilities which are bringing access to capital.
The Greentech media group also arrive at $1.2 billion for venture capital in the June quarter relating to 85 startups. The notable investment increases were in smart grid, automotive (more than $202 million), and energy storage investment (more than $180 million).
Posted under Climate Change, Economies, Renewable Energies
I just need to know how would I start my essay off? The topic is “Is Canada doing enough to combat climate change,” and I am on the positive side, or that Canada IS doing enough to combat climate change.
Do climate change followers have a weather machine in the planning stages? Should we have a standard year round temperature because we can’t have it getting all warmer and cooler just whenever the Earth feels like it?
Address this question to the climatologists who have been studying this matter for years. Those scientists, unlike you, actually have knowledge about the climate change situation and a great deal of data.
I would start it as “Is Canada doing enough to combat climate change.” Canada is a bit of a laggard.
I would like to know more on what Canada is doing. Can you refer me to any material on the internet.
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