Which country is best for clean energy investments?

By ajay at December 13, 2010 | 11:12 am | Print

Which country is best for clean energy investments?

Clean energy is one of the fastest growing business opportunities in whole world as most of the countries are now focusing more on this sector to produce energy.

Let us first see few reports regarding clean energy and know how big this business opportunities could be :

According to Pew research it could be $2.3trillion business opportunity.

Under current policies, however, cumulative investments would only reach $1.7 trillion over the next decade. In other words,strong policies would leverage an additional $546 billion worth of investment.

Pew research examines scenarios for private investment inrenewable energy assetsin G-20 nations through 2020.

Pew Report:

The report tracks and measures global investment activity – ranging from venture capital, initial public offerings from companies seeking to expand, mergers and acquisitions and lending for large scale projects – in this sector. Pew found that the global clean energy economy has experienced remarkable growth:

Globally, clean energy investments have increased 230 percent since 2005.
Despite a worldwide recession, global clean energy investments reached $162 billion in 2009.
G-20 members accounted for more than 90 percent of worldwide clean energy finance and investment.
Investment by nearly all G-20 members grew by more than 50 percent over the past five years.
More than 250 gigawatts of renewable energy generating capacity have been installed around the world, producing six percent of global energy.
Global clean energy investments are projected to reach $200 billion in 2010. (pew).

Which Clean Energy Sector Is Most Important For Investment?

Wind,Solar Or Other Renewable energy technologies

Le us explore all three one by one:


Wind Energy:

Wind energy is projected to be the leading recipient of asset financing through 2020, reflecting its status as a relatively mature and cost-competitive large-scale clean energy technology. Under the enhanced clean energy scenario, asset financing in wind
power escalates to $190 billion—an increase of 222 percent over 10


Solar Energy:
Solar accounts for the secondlargest share of asset financing in G-20 countries and maintains this position under all scenarios,retaining a fairly constant 18 percent share of total renewable energy investment. That said, the value of solar investments is projected to decline under the current and Copenhagen policy scenarios because increased sales are unlikely to keep pace with the rapid decline in prices for solar panels.Under the enhanced policies scenario, solar investments increase by 53 percent.

Bio mass,waste energy etc:

The good news for biomass,geothermal, waste energy and smallhydro power is that, collectively,investment levels in this category rise more than wind and solar if countries implement more ambitious clean energy policies. Overall,investment could grow by 263 percent to $69 billion in 2020 under the enhanced policy scenario.

Biomass and energy from waste, and smallhydro receive the most financing,while comparatively little is spent on geothermal and marine technologies.

Why It Could Work:

If G-20 countries do not implement any further policies, investment in renewable energy assets is projected to reach $189 billion by 2020—a modest 46 percent above 2010 levels. If those same nations implement their pledges made in Copenhagen,financing grows incrementally to $212 billion—growthof 64 percent over 2010.

However, if comprehensiveand effective measures are introduced to maximize a nation’s share of the global clean energy economy,
investment could reach $337 billion annually in 2020—an increase of 161 percent compared with 2010 investments in renewable energy assets.
Implementation of enhanced clean energy policies could increase annual
renewable energy capacity additions by almost 187 percent, from 62 GW added annually in 2010 to 177 GW added annually in 2020. This would mean that in 2020 G-20 nations could be adding renewable energy capacity each year equivalent to more than 50 percent of all the clean energy generating capacity currently in place today. Aggregate renewable energy capacity additions across the G-20 are forecast to total 1,180 GW over the next decade in this scenario.

Which country is best for clean energy investment :

The G-20 clean energy leader,China, would attract $93 billion worth
of clean energy project investments in 2020, a 246 percent increase over 2010.Clean energy investments increase by a staggering 763 percent in India, 325 percent in Australia, 260 percent in the
United Kingdom and 237 percent in the United States, where 2020 investments total $53 billion. As in the earlier scenarios, India’s rapid growth places it third among G-20 nations, with $33 billion worth of investments, followed by the United Kingdom ($22 billion) and
Germany ($18 billion).(p)

Visionwiz’s views:

Clean energy would certainly change the power sector economics as clean energy is low cost and environment friendly business growth options.If countries makes right policies then clean energy sector can transform the energy crisis in most of the coutries in next coming decades.Not only that if enhanced clean energy policies
are implemented, the power-sector could contribute its fair share toward the emissions reductions needed to stabilize greenhouse gas concentrations in the atmosphere at 450ppm. Under current and Copenhagen policies,greenhouse gases in the atmosphere
exceed 500ppm and the prospect of dangerous impacts for humans and
ecosystems increases.

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