Monday, July 07, 2008

UN Report on Sustainable Energy


New UN Report

On Sustainable Energy

Hugely Encouraging

According to a newly published UN report, investment in sustainable energy broke all previous records showing an increase of 60% over 2006, there was $148.4 billion of new money raised in 2007, . Total spending on sustainable energy, including speculation, was $204.9 billion.

In a bit of an understatement the reports says; “This bodes well for the industry” IMHO it is nothing short of fantastic and very encouraging for the future.

The report goes on to say: “According to New Energy Finance (Global Futures 2008), investment between now and 2030 is expected to reach $450 billion a year by 2012, rising to more than $600 billion a year from 2020. The sector’s performance during 2007 sets it on track to achieve these levels, with the current credit crunch testing the markets resolve, but not dislodging it”.

“Areas showing spectacular growth include next-generation technologies, such as cellulosic ethanol, thin-film solar technologies and energy efficiency”.

Wind is a Solid – Investment!!!

The report says of wind generation: “Wind continues to dominate sustainable energy investment, but the portfolio of available technologies has both widened (as nascent technologies start to come into their own) and deepened (as existing technologies are refined). This is partly in response to changing supply/demand patterns (e.g. continuing silicon shortages, or the controversial competition between food and fuel from food-based ethanol feedstocks), but also reflects improved efficiencies and decreasing costs as renewable technologies strive to reach grid parity”.

“ . . Willingness to look beyond mature technologies suggests that investors are taking renewable energy and energy efficiency increasingly seriously”.

Here are some of the key points

New investment in sustainable energy reached record levels of $148.4 billion, 60% higher than in 2006.

· Sustainable energy accounted for 31 gigawatts (23%) of new power generation
capacity added worldwide in 2007, and 5.4% of installed generation capacity.

· Early-stage venture capital investment surged 112% to $2 billion in 2007

· Research & Development spending on clean energy and energy efficiency was $16.9 billion in 2007

· Clean energy companies more than doubled the amount of money they raised on the world’s public markets in 2007, raising $27 billion.
· Financing of sustainable energy assets grew by 61% in 2007 to $108 billion

· Corporate Mergers & Acquisition activity increased 52% to $25.7 billion in 2007

· At the end of December 2007, over $30.0 billion was under management in core clean energy funds.

· CDM activity is dominated by India (32% of registered projects), China (19%) and Brazil (13%).

· There is a continuing shift in investment from developed to developing countries.

Investment in energy efficiency technology reached a record $1.8 billion, an increase of 78% on 2006.

Here is the link to the full report: UN ENERGY REPORT

I must say that I felt good this morning after reading this report. It show that there is a realistic shift towards the alternatives and that hard-nosed finance is taking a serious interest.


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