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Cleantech Energy Investing

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 and biofuels.

  • 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. 

 

Additional Materials


Clean Energy Technology Investment

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 (US, Canada, Brazil, Spain, Germany, UK, 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

  • Executive Summary
    • Research Scope and Methodology
    • Market Size and Growth - Two Angles
    • Market Size and Growth - Technology
      • Table Estimated Solar Panel Production & Forecasted Market Needs (GW)
    • Market Size and Growth - Geographic
      • Table Electricity Generation Capacity, by Source in China, 2009 and 2014 (GwH)
      • Table China at a Glance
    • Trends in the Clean Technology Energy Investment Market
    • Company Profiles
  • Overview of the Cleantech Investing Market
    • Research Scope
    • Cleantech Investment Chain
    • Terminology
      • Terminology - Energy Types
      • Terminology - Investment Type
      • Investments in Research and Development
      • Investments in Manufacturing Capacity
      • Consumer Investments / Purchases
      • Terminology - Technologies
      • Wind
      • Biofuels
      • Hydro
      • Geothermal
      • Nuclear
      • Clean Coal
    • Methodology
  • Market Size and Growth - Technology
    • Solar Power
      • Background on Solar Power
      • Solar Power Investments: Venture Capital
      • Market Size and Growth
        • Table Estimated Solar Panel Production & Forecasted Market Needs (Gigawatts)
      • Consumers
      • Emerging Investing Vectors
      • Government Support
      • Distributed Solar
    • Wind Power
      • Background on Wind Power
      • Market Size and Growth
        • Table Estimated Wind Turbine Installation & Forecasted Investments (GW / USD Billions)
      • Other Wind Market Trends
      • The future of Offshore Wind
      • Wind Energy as a Job Generator
      • Danger of Overcapacity
    • Biofuels
      • Background on Biofuel Technology
      • Market Size and Growth - Venture Capital
      • Market Size and Growth - Capacity and Manufacturing
        • Table Global Market Values of Biofuel and Bioenergy (Organic and Technology) Manufacturing, by Country, 2009 and 2014 (In $ millions USD)
      • Other Biofuel Trends
      • Innovations in Biorefineries
      • Innovations in Biofuel Processing
        • Table Case Study in Innovation: Algae Technology
    • Hydro Power
      • Background on Hydro Power
        • Table Classification of Hydro Project According to Power Output
      • Market Size and Growth
        • Table Growth of Hydro Power Investments Across Project Sizes (Billion / million USD)
      • Trends for Growth
        • Table Case Study: SN Power and the Privatization of Filipino Hydro Assets
      • Emerging Hydro Technologies
    • Geothermal Energy
      • Background on Geothermal Power
      • Market Size and Growth - Large Scale Facilities
        • Table Estimated Geothermal Installation & Forecasted Investments (In millions of kilowatt hours / billion USD)
      • Market Size and Growth - Geothermal Heat Pump (GHP)
      • Trends
      • Hydrocarbon/Geothermal Co-Production
    • Nuclear Energy
      • Technology Background on Nuclear Energy
        • Table Nuclear Facility Generation Reference Chart(15)
      • Current Nuclear Market and Estimated Growth
        • Table Estimated Country Nuclear Capacity and Capacity Change through 2013
        • Table Global market Value of Nuclear Energy Technology Manufacturing (In millions of $)
      • Outlook on Nuclear Energy
    • Clean Coal
      • Technology Background on Clean Coal
      • Market Size and Growth
      • Outlook on Clean coal
  • Market Size and Growth - Geographic
    • Americas
      • USA
        • Table Electricity Generation Capacity, by Source in United States, 2009 and 2014 (Quadrillion BTUs [British Thermal Units])
        • Table Overview of Energy Programs and Subsidies Driving Growth in the United States
        • Table Case Study #1: New York Enhances Funding for Renewable Energy
        • Table Case Study #2: Wyoming Wants to Tax Specifically Wind Energy
        • Table U.S. Renewable Energy Consumption, by Source, 2009 and 2014 (Trillion BTU)
      • Solar in the U.S.
      • Wind Energy in the U.S.
      • Biomass and Biofuels in the U.S.
      • Hydro in the U.S.
      • Geothermal in the U.S.
      • Nuclear Energy in the U.S.
      • Clean Coal in the U.S.
      • Canada
      • Brazil
        • Table Electricity Generation Capacity, by Source in Brazil, 2009 and 2014 (GwH)
    • Europe
      • Spain
        • Table Electricity Generation Capacity, by Source in Spain, 2009 and 2014 (GwH)
      • Germany
        • Table Electricity Generation Capacity, by Source in Germany, 2009 and 2013 (MwH)
      • United Kingdom
        • Table Electricity Generation Capacity, by Source in the U.K, 2009 and 2014 (MwH)
        • Table UK at a Glance
      • France
        • Table Electricity Generation Capacity, by Source in France, 2009 and 2014 (GwH)
    • Asia
      • China
        • Table China's Electricity Consumption, 2009-2014 (billion kWhs)
        • Table Electricity Generation Capacity, by Source in China, 2009 and 2014 (GwH)
        • Table China at a Glance
      • India
        • Table Electricity Generation Capacity, by Source in India, 2009 and 2014 (GwH)
        • Table Estimated investments in Renewable Energies in India, 2009 to 2014 (US$)
        • Table India at a Glance
    • Japan
    • Australia
  • Trends in the Clean Technology Energy Investment Market
    • How did the Global Financial Crisis Impact Investing in the Market?
      • Financial Capital Suppliers
      • Clean Technology Companies
      • End-user Investing
    • Is Clean Energy Technology Investing in an Investment Bubble?
    • Is Clean Technology Energy Overly Dependant on Government Support?
    • Is the Accent on Job Stimulus in Funding Programs Creating a Bias to Mature Technologies?
    • Is There Really Room for Growth?
    • Is it Time to Start Branding Clean Energy Technologies?
    • What is the Role of the Green Consumer in Driving Clean Energy Investment?
    • Where is There the Best Growth Opportunity in Consumer-Based Clean Technologies, or Large Scale Projects?
    • Overall What’s the Outlook of Clean Technology Energy in the Next Four to Eight Years?
  • Company Profiles
    • Battelle Ventures
      • Table Battelle Ventures
      • Corporate Background
      • Key Executives
      • Key Investments
    • Evergreen Solar
      • Table Evergreen Solar
      • Corporate Background
        • Table Product Brand Portfolio
      • Key Executives
      • Company News
      • Outlook
    • Fotowatio Renewable Ventures
      • Table Fotowatio Renewable Ventures
      • Corporate Background
      • Key Executives
        • Table Current Project Portfolio
      • Company News
      • Closing US $200M Solar Fund V
      • FRV to Invest to Build and Operate 37 MW of Solar Projects in Italy
    • Gamesa
      • Table Gamesa
      • Corporate Background
      • Product and Brand Portfolio
        • Table Gamesa’s Product and Brand Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • GFI Energy Ventures LLC
      • Table GFI Energy Ventures LLC
      • Corporate Background
      • Key Executives
      • Strategy
      • Key Investments
    • Guinness Atkinson Funds
      • Table Guinness Atkinson Funds
      • Corporate Background
      • Key Executives
        • Table Funds Under Management
      • Alternative Energy Fund
        • Table Key Investments (as of 28th of February 2010)
        • Table Top Industry Sectors (28 February 2010)
    • Nth Power
      • Table Nth Power
      • Corporate Background
      • Strategy
      • Key Executives
      • Key Investments
    • SN Power
      • Table SN Power
      • Corporate Background
      • Key Executives
      • Worldwide Presence
      • Latin America
      • Africa and Central America
    • SVB Financial Group
      • Table SVB Financial Group
      • Corporate Background
      • Key Executives
      • SVB Cleantech Practice
    • Spectrum Renewable Energy Limited (SREL)
      • Table Spectrum Renewable Energy Limited (SREL)
      • Corporate Background
      • Products - BioBowser
      • Key Executives
    • Suntech
      • Table Suntech
      • Corporate Background
        • Table Product and Brand Portfolio
      • Performance
      • Company News
      • Long-term Strategy
    • Vestas
      • Table Vestas
      • Corporate Background
        • Table Product and Brand Portfolio
      • Company News
      • Long Term Equity Financing
      • Long Term Strategy: Triple 15

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