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North American Renewable Energy Market - Investment AnalysisPublished by: Frost & Sullivan Published: Jun. 18, 2007 - 49 Pages Table of Contents
AbstractThe Frost & Sullivan research service titled North American Renewable Energy Market: Investment Analysis & Growth Opportunities provides financial benchmarking analysis of biometrics industry including year-to-date performance of Frost & Sullivan renewable energy stocks and valuation multiples for renewable energy companies, growth monitor that ranks companies based on prospective revenue growth, and an industry growth outlook that discusses market estimates until 2010. In this study, Frost & Sullivan's expert analysts thoroughly examine the following energy markets: wind, solar, hydro, ethanol, biomass, and geothermal.Government Initiatives Heighten Focus on Renewable Energy The North American renewable energy market is currently in its growth stage, driven largely by Government incentives and initiatives to reduce dependency on fossil fuels. In January 2007, the U.S. House of Representatives passed the Clean Energy Act, which rolls back subsidies and tax breaks for large oil companies and when enforced, this legislation is expected to shift more than $14 billion from certain subsidies to investments in clean energy, such as energy-efficient technologies and renewable power. Likewise, the Canadian Government, in January 2007, launched three new ecoENERGY initiatives for boosting renewable energy and reducing greenhouse gas emissions, promising considerable investments in these initiatives over a period of four years. Going forward, these initiatives and many others are likely to significantly aid the growth of the North American renewable energy markets. However, increasing raw material costs, high initial capital outlay, and procedural delays pose notable challenges for market participants and could hamper market growth. "For example, the solar energy market is currently facing shortage of silicon, which is the key raw material for solar energy generation," notes the analyst of this research service. "Similarly, wind turbines, which are currently expanding rapidly, could be impacted by the short-term price increases caused by high steel costs and shifting currency valuations." Renewable Portfolio Standards expected to ensure Steady and Predictable Growth Renewable portfolio standards (RPS) are likely to be a key factor in the United States renewable energy market, helping ensure steady and predictable growth. RPS is a flexible market-driven policy formulated to ensure that a growing percent of electricity is produced from renewable energy sources, and states provide financial incentives in the form of tax cuts, rebates, grants, and loans to drive producers and consumers of renewable energy to attain the mandates. RPS is in force in nearly 21 states in the United States and California, for example, has set a target of 12 percent of its total electricity to be generated from wind and geothermal energy. New York State is paving the way for its clean energy portfolio standards, making efforts to increase its total electricity generated from renewable energy sources from 19 percent in 2006 to 25 percent by 2013. With regard to market segments, the hydro energy segment accounted for the largest share of the North American renewable energy market in 2006. However, the ethanol energy segment is likely to witness the fastest growth, growing at a five-year compound annual growth rate (CAGR) of 19.0 percent between 2006 and 2010. "The key to the growth of renewable energy lies in cost competitiveness to gain wider market acceptance and achieve faster replacement of fossil fuels," says the analyst. "This calls for investment in newer technologies, ideas to lower costs, and the address of barriers hindering the deployment of renewable energy." Get Full Details About This Report >> |
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