Energy consumption is rapidly growing around the world. The modernization of emerging economies (such as India and China) has increased pressures on traditional energy providers (as well as increasing environmental concerns). As fossil fuel reserves dwindle, there is a growing need for clean energy supplies. Clean energies have emerged as an alternative for the fossil fuels, but many technologies still do not display the same level of efficiency and maturity compared to more traditional sources.
Investments remain a key growth factor, as many technologies present technical limitations to practical use. Many existing cleantech technologies cannot compete with coal energy, with is used as the current benchmark when evaluating feasibility. Subsidies are an important key of the clean technologies puzzle, but if these technologies are unable to develop long-term comparables, they run the risk of being relegated to niche products. This is especially true of renewable technologies.
This new SBI Energy reports delves into the global investments patterns dedicated to developing and commercializing these technologies. It covers a significant range of technologies and geographies to gain a greater understanding of the global investments market. After interviewing close to a dozen key stakeholders of the clean energy technology sector and doing extensive documentary research, we were able to build this report.
Exploring investment growth in seven energy producing technologies (solar, wind, biofuel, hydro, geothermal, nuclear and clean coal) and eleven geographies (the United States, Canada, Brazil, Spain, Germany, the United Kingdom, France, China, India, Japan and Australia), it is an essential tool for any manager looking for a global clean energy investment perspective within a single document.
Read an excerpt from this report below.
Market Insights: A Selection From The Report
Is There Really Room for Growth?
From a global perspective, most investors agree that there are tremendous growth
opportunities in investing in clean technology energy. This is especially true from the enduser
perspective, as many utilities and governments have announced 2020 renewable energy
targets, and consumers are increasingly interested in green technology purchases. But we
have found that there is manufacturing overcapacity in three key technologies: wind, solar
Solar -- photo-voltaic overcapacity is especially present in Spain (with successive
cuts in feed-in tariffs, leaving many producers with products too expensive for the market), and China (with more local manufacturing units opening than the market is able to absorb the capacity). Overcapacity is expected to persist until 2012.
Wind -- turbine manufacturing is described as being over capacity in China (with too
many players entering simultaneously the market) and in the United States (where sales has slowed to lower levels than current capacity). Europe still has some level of balance. Overall, overcapacity is estimated to be anywhere between 25%-30%.
Biofuel -- Production capacity exceeds current feedstock supplies. This further accentuates the commodity risk that biofuel presents.
This overcapacity could further encourage merger and acquisition, but more likely, it will
increase the importance of branding for renewable energy technologies. It could also hamper
growth as market capacity struggles to reach production capacity. Even if the future seems
bright for clean energy, SBI Energy believes it could take until 2012 before investments are
made in greater quantities to increase manufacturing capacity.
In the News
Future of Global Cleantech Energy Investing Stabilized by Seven Pillars of Renewable Power,
Lead by Activity in the U.S., China, and Europe
New York, June 14, 2010 - SBI Energy, the leading industrial market research firm behind bestselling titles Clean Coal Energy Technologies: Markets and Trends Worldwide and Nuclear Energy Technologies Worldwide: Components and Manufacturing, has added Cleantech Energy Investing to its growing catalog of global reports covering alternative power resources.
Cleantech Energy Investing analyzes the global investment patterns dedicated to developing and commercializing cleantech energy. The report’s scope covers investment growth in seven energy producing technologies (solar, wind, biofuel, hydro, geothermal, nuclear and clean coal) and eleven geographies (the United States, Canada, Brazil, Spain, Germany, the United Kingdom, France, China, India, Japan and Australia). For each technology, the report provides a short technical background, defines market size and growth, and identifies trends and opportunities.
As fossil fuel reserves dwindle, there is a growing need for clean energy supplies. Most clean technologies are sound and are emerging as alternatives to fossil fuels. Nevertheless, investments remain a key growth factor. To compete, clean energy sources must advance to reach the same level of efficiency, maturity and practical use as traditional sources.
In the U.S., solar and wind energy are predicted to be the breakthrough powerhouses of the seven technologies profiled. SBI Energy forecasts domestic investment growth rates for solar energy could easily top 40% over the next four years. Meanwhile, wind energy projects are underway or planned by 79% of utilities in the U.S. within the next five years.
“Clean energy expansion is pegged to energy policy and federal stimulus funds in the U.S. Investment growth rates will increase slowly but steadily driven by both political and consumer pressure associated with the green agenda,” says Jean-Francois Denault, SBI Energy analyst and author of the report.
Globally, Europe is the region expected to generate the steadiest growth. Europe's overall investments in cleantech—estimated at $50 billion and with a yearly growth of 2%-3%—are expected to continue for the 2010-2014 period.
Meanwhile, Asia’s growth rate in energy consumption is phenomenal. Primary energy demand is expected to grow by almost 76% between 2007 and 2030. Growth in the region is driven mostly by China, India and Japan. In particular, China, as one of the world's most rapidly growing economies, is at the center of the action in the clean energy industry with goals to invest $22 billion in renewable energy by 2020.
Cleantech in South America is characterized by a potential for rapid growth, but fragile economies have more urgent priorities for the short term meaning most projects in the region are either biofuel-based (as is the case in Brazil) or use established technologies (such as hydro power). Without opportunities for important financial assistance, it is very hard to jumpstart hedgier technologies (such as solar, wave or tidal). While political risks hinder growth, privatization of large assets (such as hydro and nuclear facilities) provides big growth opportunities. SBI Energy expects regional growth in South America will vary substantially from one country to the next.
About SBI Energy SBI Energy,a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.