The Implications of the Expiration of US Renewable Energy Subsidies

US Renewable energy subsidies expired in 2011 and this will slow the growth of renewables. There is already evidence that the expiration of the renewable energy cash grant programme under Section 1603 of the US Internal Revenue Code will reduce the volume of new renewable energy projects.

A significant volume of Q4 2011 transactions were driven by efforts to benefit from Section 1603. As a consequence the impact of renewable energy subsidies will not be immediately felt during the first six to nine months of 2012.

In 2011, although the debt market for renewable energy financing was strong, there was evidence that lenders became even more cautious. In 2012, different capital markets solutions will need to be considered.

To improve the outlook for renewable energy Congress can support President Obama's budget proposals to end oil subsidies and make renewable energy tax credits permanent.

© 2012, Richard Matthews. All rights reserved.

Related Posts
Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent
Cuts to UK Solar FiTs Could Prove Deadly
Cuts to UK Wind Power ROCs & FiTs
The EU Debt Crisis did Not Curb the Growth of Renewables in 2011
UK Renewable Energy 2011 Overview
UK Wind Energy
US Wind Energy Market Review and Forecasts for 2012
US Solar Energy Review and 2012 Forecasts
Renewable Energy in 2012: The Global Economic and Environmental Climate
Renewable Energy Is Our Only Hope
How the West can Capitalize on the Growth of Chinese Cleantech in 2012
Outlook for the Chinese Solar Industry in 2012
India is the World Leader in Cleantech Investment Growth

Read More»

US Wind Energy Market Review and Forecasts for 2012

After decreasing by almost 50 percent in 2010 the US wind installations began to show signs of recovery in 2011. Wind farms have proliferated across the United States over the past decade, they now generate 3 percent of the nation's electricity. Wind power has installed 35 percent of all new American electric generation in the last five years. Wind energy is also one of the fastest growing new sources of US manufacturing jobs. American wind power accounts for 75,000 jobs today, and can grow to almost 100,000 jobs four years from now and according to a Bush Administration study, wind can support 500,000 American jobs less than 20 years from now. The U.S. now has over 400 manufacturing facilities in 43 states involved in wind turbine manufacturing. This represents a 12-fold growth in domestic manufacturing over the last six years.

Globally 2011 was a good year for wind installations in China, India and Canada and even Europe. Led by Brazil and Mexico, we are starting to see major growth in Latin America. The US market, although not up to the 10 GW installed in 2009, will be well ahead of 2010’s 5 GW market.

Increasing fossil fuel prices mean that as far as cost efficiency is concerned the wind power could achieve parity by 2016. The best wind farms in the world already produce power as economically as coal, gas and nuclear generators.

More than 7 GW of wind capacity is expected to be installed in the US in 2012, a 25% increase on 2011. The growth in wind is fueled by the proximate expiration of the Loan Guarantee programme, the production tax credit (PTC) and the investment tax credit (ITC), the main drivers for the wind market.

As developers of wind energy rush to complete projects before the expiration of the PTCs at the end of this year, the market will experience an acceleration of installations, especially during Q1 and Q2 of 2012. If the PTCs are not extended, a major halt throughout the entire US wind industry can be anticipated in the second half of 2012.

© 2012, Richard Matthews. All rights reserved.

Related Posts
Renewable Energy in 2012: The Global Economic and Environmental Climate
Renewable Energy Is Our Only Hope
How the West can Capitalize on the Growth of Chinese Cleantech in 2012
Outlook for the Chinese Solar Industry in 2012
India is the World Leader in Cleantech Investment Growth
The EU Debt Crisis did Not Curb the Growth of Renewables in 2011
UK Renewable Energy 2011 Overview
UK Wind Energy
Cuts to UK Solar FiTs Could Prove Deadly
Cuts to UK Wind Power ROCs & FiTs
The Implications of the Expiration of US Renewable Energy Subsidies
Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent
US Solar Energy Review and 2012 Forecasts
Geothermal Energy Market Review and Forecasts for 2012
Private Sector Green Investment
Cleantech the Next Great Investment Opportunity
Will 2012 be the Best Year Ever For Clean-Tech Investment?
Investments from Corporate Sustainability is Driving Green Businesses in the UK
UK Government Investments in Efficiency and Renewable Energy
Growing US Corporate Investments are Driving Cleantech
Greener Vehicles Growing Cleantech and Providing Green Jobs
Cleantech Partnerships and Collaborations
California and Other US Leaders in Cleantech Investments
Leading US Cleantech Investment Sectors in 2011 Q3 and Q4
VC Investment in US Cleantech in 2011
US Regains Lead from China as Clean Energy Leader
Investing in CleanTech: Efficiency Upgrades and Renewable Energy

Read More»

Geothermal Energy Market Review and Forecasts for 2012

Although wind and solar energy steal most of the headlines, geothermal energy is enjoying significant growth. The past five years have seen accelerated geothermal development in countries like New Zealand, Indonesia and the US. But geothermal is also growing in new markets including countries like Australia and Germany. Geothermal is projected to grow at an annual rate of 7 percent.

We have seen growth in conventional hydrothermal resources in volcanic regions, but we have also seen growth in Enhanced Geothermal System (EGS) projects in non-volcanic regions. Technological innovations have facilitated the expansion of geothermal into areas with lower temperature, restricted water access, and constrained surface utilisation. The US currently has six active EGS developments.

According to Roland Horne, President, International Geothermal Association, "Future expansion depends on exploring for new fields and overcoming technical challenges in known but not-yet-exploited fields. Two issues that are currently being addressed by the world geothermal community are:

(1) The ‘productivity gap’ in the exploitation of fields that are too hot for downhole pumps, but too cool for flash production

(2) The development of reliable EGS development procedures that can ensure sustainable flow rates and assure the public that induced seismicity will not be a problem

© 2012, Richard Matthews. All rights reserved.

Related Posts
Renewable Energy in 2012: The Global Economic and Environmental Climate
Renewable Energy Is Our Only Hope
How the West can Capitalize on the Growth of Chinese Cleantech in 2012
Outlook for the Chinese Solar Industry in 2012
India is the World Leader in Cleantech Investment Growth
The EU Debt Crisis did Not Curb the Growth of Renewables in 2011
UK Renewable Energy 2011 Overview
UK Wind Energy
Cuts to UK Solar FiTs Could Prove Deadly
Cuts to UK Wind Power ROCs & FiTs
The Implications of the Expiration of US Renewable Energy Subsidies
Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent
US Wind Energy Market Review and Forecasts for 2012
US Solar Energy Review and 2012 Forecasts
Private Sector Green Investment
Cleantech the Next Great Investment Opportunity
Will 2012 be the Best Year Ever For Clean-Tech Investment?
Investments from Corporate Sustainability is Driving Green Businesses in the UK
UK Government Investments in Efficiency and Renewable Energy
Growing US Corporate Investments are Driving Cleantech
Greener Vehicles Growing Cleantech and Providing Green Jobs
Cleantech Partnerships and Collaborations
California and Other US Leaders in Cleantech Investments
Leading US Cleantech Investment Sectors in 2011 Q3 and Q4
VC Investment in US Cleantech in 2011
US Regains Lead from China as Clean Energy Leader
Investing in CleanTech: Efficiency Upgrades and Renewable Energy

Read More»

US Solar Energy Review and 2012 Forecasts

The solar sector will face some intense headwinds in 2012. Despite obstacles, the solar market may add at least 25 GW of new capacity in 2012. In North America the market for photo voltaic solar panels has a projected compounded annual growth rate of 42 percent between 2011 and 2015.

Last year was tough for US solar manufacturers. They were forced to reduce prices, decrease margins, close some manufacturing facilities, or even declare bankruptcy. In the 2011 solar market we saw increased manufacturing capacity but we also saw higher silicon supply, lower demand, oversupply and limited credit availability. Perhaps most significantly solar module prices experienced a sharp decline in part due to low cost Chinese PV cell manufacturers.

However, lower module prices have helped reduce the price of solar energy, making solar more competitive with other forms of electricity generation. Today’s manufacturing cost per watt can be as low as US$0.82. These prices can be expected to keep declining particularly as US homeowners are buying solar panels.

The disappearance of the Section 1603 Treasury Grants program at the end of 2011 mean that projects will need tax equity partners. Ernst & Young said that the year ahead will be difficult: “2012 will likely see a significant shortfall of tax equity, and the supply-demand mismatch may limit growth trends in solar and wind development.”

The reality of mainstream global grid parity is getting closer in the solar sector. The declining price of solar has allowed it to grow even in the unsubsidised markets in some emerging economies.

These challenges have not as yet affected overall investment in solar energy. Module prices are expected to further decline over the next five years. This will make solar energy more affordable even in the absence of subsidies.

Regardless of the economic environment, we can expect to see rapid change in renewable energy market and this is particularly true of photo voltaics.

© 2012, Richard Matthews. All rights reserved.

Related Posts
Renewable Energy in 2012: The Global Economic and Environmental Climate
Renewable Energy Is Our Only Hope
How the West can Capitalize on the Growth of Chinese Cleantech in 2012
Outlook for the Chinese Solar Industry in 2012
India is the World Leader in Cleantech Investment Growth
The EU Debt Crisis did Not Curb the Growth of Renewables in 2011
UK Renewable Energy 2011 Overview
UK Wind Energy
Cuts to UK Solar FiTs Could Prove Deadly
Cuts to UK Wind Power ROCs & FiTs
The Implications of the Expiration of US Renewable Energy Subsidies
Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent
US Wind Energy Market Review and Forecasts for 2012
Geothermal Energy Market Review and Forecasts for 2012
Private Sector Green Investment
Cleantech the Next Great Investment Opportunity
Will 2012 be the Best Year Ever For Clean-Tech Investment?
Investments from Corporate Sustainability is Driving Green Businesses in the UK
UK Government Investments in Efficiency and Renewable Energy
Growing US Corporate Investments are Driving Cleantech
Greener Vehicles Growing Cleantech and Providing Green Jobs
Cleantech Partnerships and Collaborations
California and Other US Leaders in Cleantech Investments
Leading US Cleantech Investment Sectors in 2011 Q3 and Q4
VC Investment in US Cleantech in 2011
US Regains Lead from China as Clean Energy Leader
Investing in CleanTech: Efficiency Upgrades and Renewable Energy

Read More»

Renewable Energy in 2012: The Global Economic and Environmental Climate

Since 2009, lower fuel and energy prices created some tough uphill conditions for renewable energy. Despite these powerful headwinds renewable energy installations have increased over the last few years.

On the upside, the Latin American boom should continue to grow in 2012 led by countries like Brazil and Mexico, and new markets will emerge in countries like Kenya, South Africa and Mongolia.

However, the wider economic and political conditions are likely to worsen for renewable energy. One of the most difficult obstacles concerns the impact of the expiration of renewable energy subsidies in the US. Despite efforts from the solar industry, at the end of 2011 the Section 1603 Treasury Grants program came to an end. The wind industry faces a major obstacle with the expiration of the production tax credit (PTC), set for the end of this year.

Subsidies for renewable energy are being cut in the UK's solar and wind energy sectors. US renewable energy subsidies expired at the end of 2011 and Germany is planning to massively cut the Feed-in-Tariffs (FiTs) as of 9 March, 2012. The issue of Japanese FiTs is expected to be addressed by spring.

In the EU, the Eurozone crisis may result in a European recession. If the Eurozone crisis is brought under control, then it will benefit renewable energy markets in 2012, especially offshore.

In China we are seeing evidence of a slowdown and many are calling for major economic reforms. Economic growth in India slowed at the end of 2011.

The hope and promise of the ‘Arab Spring’ has given way to a winter of discontent as regimes in the Arab world are in turmoil.

In 2012, talk of war with Iran and instability in oil rich regions are creating uncertainty and driving up the price of oil. While this may help to create price parity for renewables, it also creates even greater economic pressures on the fragile global economies of nations that are still struggling to emerge from recession.

Amidst all this political and economic uncertainty, global warming continues unabated. NOAA said all 11 years of the 21st century rank among the 13 warmest. And NASA noted 9 of the top 10 warmest years in its record have occurred since 2000.

The La Nina effect was the warmest on record in 2011 according to data from NOAA and NASA. The increasing probality of melting Greenland and Antarctic icecaps are creating real concerns about the future of the planet.

The string of warm years in the last decade is linked to rapidly increasing concentrations of greenhouse gases NASA said. “Higher temperatures today are largely sustained by increased atmospheric concentrations of greenhouse gases, especially carbon dioxide,” NASA wrote in a press release. As the world's economies get stronger, energy demands will keep increasing and carbon emissions will keep rising.

The IEA’s chief economist has said that governments only have five years to avoid more than 2°C of global mean temperature rise.

These factors coalesce to create a troubling outlook. There is both an increased need for renewable energy and a decreased economic and political capacity to meet this need.

© 2012, Richard Matthews. All rights reserved.

Related Posts
Renewable Energy Is Our Only Hope
How the West can Capitalize on the Growth of Chinese Cleantech in 2012
Outlook for the Chinese Solar Industry in 2012
India is the World Leader in Cleantech Investment Growth
The EU Debt Crisis did Not Curb the Growth of Renewables in 2011
UK Renewable Energy 2011 Overview
UK Wind Energy
Cuts to UK Solar FiTs Could Prove Deadly
Cuts to UK Wind Power ROCs & FiTs
The Implications of the Expiration of US Renewable Energy Subsidies
Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent
US Wind Energy Market Review and Forecasts for 2012
US Solar Energy Review and 2012 Forecasts
Geothermal Energy Market Review and Forecasts for 2012
Private Sector Green Investment
Cleantech the Next Great Investment Opportunity
Will 2012 be the Best Year Ever For Clean-Tech Investment?
Investments from Corporate Sustainability is Driving Green Businesses in the UK
UK Government Investments in Efficiency and Renewable Energy
Growing US Corporate Investments are Driving Cleantech
Greener Vehicles Growing Cleantech and Providing Green Jobs
Cleantech Partnerships and Collaborations
California and Other US Leaders in Cleantech Investments
Leading US Cleantech Investment Sectors in 2011 Q3 and Q4
VC Investment in US Cleantech in 2011
US Regains Lead from China as Clean Energy Leader
Investing in CleanTech: Efficiency Upgrades and Renewable Energy

Read More»

Only Sustainable 2011: The Capital of Sustainable Energy for the Americas

Between November 7 and 9, Miami Dade College is hosting the Only Sustainable 2011 event. This is one of the most prestigious events on American sustainable energy. Over 40 expert speakers and senior representatives of the energy industry will discuss the latest sustainable energy trends. More than 400 professionals and companies are expected to attend from Spain, US and Latin America.

Sustainable energy is the industry with the most growth projection over the next decade. This conference is a vital meeting place for investors, banks, companies, scientists, governments and other actors within the renewable energy sector.

This is an effective channel to build alliances and relationships between industry leaders and learn about the latest developments in sustainable energy at the hands of more than 50 recognized leaders and energy experts.

For three consecutive days of lectures, 40 public and private sector speakers, public authorities, regulators, businessmen and academics in the industry will discuss the most important aspects about projects, the present conditions, strategies, regulations, tax issues and future prospects related to sustainable energy production in the region.

Among the top-level speakers are also important representatives of public organizations and institutions in the sector of renewable energies such as:

• Adam Putnam, Florida Commissioner of Agriculture (Department of Agriculture and Biomass), Florida, United States
• Barry Moline, Director of the Municipal Association in Florida, United States; F. Javier Salazar, President of the Energy Regulatory Commission, Mexico; Spain
• Ronald A. Brisé, Commissioner Florida Public Service and Member of the National Association of Utility Commissioners (NARUC), Florida, United States
• Margaret M. Cullen, Development Commissioner for Energy, Canada
• Senior executives from leading international firms such as Bankia, Gamesa, NextEra / FPL, FCC Energy, Banco Sabadell and Baker & McKenzie

According to Vicente López-Ibor, President of the Advisory Council for Only Sustainable: “This conference provides a great opportunity to discuss current challenges in the energy sector - from an economic, regulatory, technical and environmental perspective.”

The International Conference has the support of recognized international institutions such as Miami Dade College, Madrid, Network, Energy Cluster, Greater Miami Chamber of Commerce and Bankia.

For more information click here.

© 2011, Richard Matthews. All rights reserved.

Read More»

Video: Move to Green Economy a Global Competition

Bruce J. Katz is a vice president at the Brookings Institution and founding Director of the Brookings Metropolitan Policy Program which aims to provide decision makers in the public, corporate and civic sectors with policy ideas for improving the health and prosperity of cities and metropolitans areas. Katz regularly advises federal, state, regional and municipal leaders on policy reforms that advance the competitiveness of metropolitan areas.

Katz says the move to a greener economy is a global competition. The US must wisely and expeditiously develop both policies and practices that encourage more innovation and growth in this critical area. Growth through Innovation.

© 2011, Richard Matthews. All rights reserved.

Related Posts
Video: China Leading the Green Economy while America's Democracy is Being Undermined
Government Investment Green Jobs and Economic Recovery
China can School the US About Green Growth
China's Green Innovation and the Challenge for America
Rare Earth Minerals Power the Green Economy and Embolden China's Bid for Dominance
China's Most Recent Five Year Plan
China's Green Investments and Growing Economic Preeminence
China Poised to Challenge Global Auto Giants in the Greener Vehicle Market
The US is Positioned to Lead the Global Competition for EV Supremacy
Competition in the Global EV Market
Competition in the 2011 Greener Car Market
Competition in the Green Vehicle Market
Germany and the Global Competition for EV Supremacy
Clean Tech Job Trends 2010 Report: Growth and Global Competition

Read More»

Economic Development is the Only Way Forward

Some of the most passionate supporters of the environment argue that we cannot make the necessary changes within the current consumer oriented capitalist system. They point to the fact that growth in the 20th century was all about resource depletion.

Economic growth is not an end, but rather a means to an end. Because economic growth is premised on the concept of increasing quantity, it may be more productive to frame the issue in terms of economic development. Economic development looks at growth as a means of achieving a higher level of individual and societal well-being. While economic growth is about quantity, economic development is about quality. A well developed economy is one that meets people's needs and provides well-being for everyone.

Economic development is based on the collective good which is ultimately about creating more value per person.

UNEP's Executive Director Achim Steiner said in the statement: "With 2.5 billion people living on less than two dollars a day and with more than two billion people being added to the global population by 2050, it is clear that we must continue to develop and grow our economies. But this development cannot come at the expense of the very life support systems on land, in the oceans or in our atmosphere."

Growth and resource depletion are not inexorably linked and given the urgency, the green economy is the only solution we have of capable of addressing the environmental and social threats we face.

We simply do not have time to rebuild society anew, nor is it reasonable to wipe the slate clean. In the form of economic development, growth can serve the earth and its inhabitants. However future growth will not be based on wanton resource depletion, it will be about increased efficiency and productivity.

© 2011, Richard Matthews. All rights reserved.

Related Posts
The False Choice Between the Economy and the Environment
Investing in Green Economic Growth
Sustainable Growth Excludes Fossil Fuels
Belief in Global Warming is Tied to the Economy
Global Trends 2025: A Greener World

Read More»