NEW ENERGY GOING HERE, THERE, UP, DOWN

Renewable Energy Industry At A 'Tipping Point' As Governments Decrease Subsidies

3 December 2012 (Renew Grid)

“…Renewable energy continues to thrive in emerging markets, many of which have opted for capacity tenders rather than government subsidies…In the third quarter of this year, China continued to lead Ernst & Young’s All Renewables Index but dropped a point, as its solar sector continued the consolidation process in an effort to boost domestic installation and rationalize government support, which could slow growth in the more immediate term, the firm says…

“…In recent months, China has also seen a large outflow of Chinese investment in favor of markets in Africa and South America…The quarter also saw Germany surpass the U.S. in the renewable energy attractiveness index, as the U.S. dropped 1.5 points. Although the German government recently increased the country’s renewable energy target to 40% by 2020 and is proactively implementing policy measures to create sustainable growth, the downgraded score reflects the more immediate changes around possible subsidy caps for solar, wind and biomass.”

click to enlarge

“Within the U.S., the uncertainty about long-term energy policy, concerns over the extension of key renewable energy incentives and the availability of low-priced natural gas are likely to continue slowing the growth in the sector in the short to medium term, particularly in the wind energy sector…

“Global clean energy investment fell 5% in the third quarter to $56.6 billion, as investor enthusiasm was dampened by skepticism over policymakers’ renewable energy commitments. However, the drop also reflects a decrease in the costs for wind and solar technology…New investment levels have varied globally, with investment in Europe, the Middle East and Africa rising 7% to $21 billion in the quarter, which was mainly driven by solar thermal and wind project financings in Morocco. However, in the same period, investment in the Americas and the Asia Pacific slipped by 25% and 3%, to $10.4 billion and $25.2 billion, respectively…”

Tweet