• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 5 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 6 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 19 mins A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 51 mins Used Thin Film Solar Panels at 15 Cents per Watt
  • 5 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 12 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 15 mins IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 18 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 19 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 15 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 16 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 11 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 10 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
Alt Text

Renewables Are Set To Outprice Oil & Gas By 2020

Rapidly falling costs of renewable…

Alt Text

Electric Vehicle Sales Are Exploding In Europe

European electric vehicle sales are…

Jen Alic

Jen Alic

 

More Info

Premium Content

Clean Energy Investments Reduce Prices, Increase Policy Initiatives

Global rankings place the United States in the top spot for investment in clean energy in 2011, with over $48 billion in energy sector investments, including solar, biofuels and wind energy, up from $34 billion the year before.

The US now has a total installed renewable energy capacity of 93 GW, which includes the addition of 6.7 gigawatts (GW) of wind and more than 1 GW of solar energy – the equivalent necessary to power over 800,000 homes. 

China, which was bumped to second place, saw investment in clean energy increase by $0.5 billion since 2010, for a total of $45.5 billion in 2011, according to the Who is Winning the Clean Energy Race report. 

From a global perspective, total investments in the clean energy sector reached $263 billion, a 6.5% increase from 2010. Over half of that investment, $137 billion, went to solar energy, with investment in wind energy at $75 billion.

The report also applauds the fact that the installation of clean energy generation capacity has now outstripped nuclear capacity installation by 47%.

The rise in global investments in clean energy have three important implications that put the numbers into a broader perspective. First, the increasing level of investment in the clean energy sector is driving prices down; second, the momentum is driving policy intervention in a positive way; and third, it creates more jobs.

According to the Climate Institute, solar PV panel prices have fallen by 75 percent over the last five years. Likewise, the cost of wind energy has fallen by over 50 percent for onshore generation and over 75 percent for offshore generation since 1985. According to Thinkprogress.org, “Clean Edge” projects in 13 US states could drive solar PV prices down in less than a decade to make the cost-competitive at the residential level, without subsidies.

Energy security, energy independence, and environmental concerns are driving global investments in clean energy. Subsidies for renewable energy have amounted to $66 billion.

Still, this compares to billions more in subsidies for fossil fuels. 

Job creation has also been a positive effect of the increase in clean energy investment.

According to the Climate Institute, globally, the renewable energy industry now employs up to 3 million people and could employ as many as 30 million by 2030. In fact, some recent independent studies show that investments in the clean energy sector create three times the jobs created by the same investments in the fossil fuel sector. 

Will the US be able to maintain this pace of progress? In order to do that, policymakers will have to work hard to keep the momentum.  Treasury grants and loan guarantee programs managed by the Department of Energy will expire at the end of 2012, along with important alternative fuel production tax credits.

The US Treasury renewable energy subsidy created some 75,000 jobs and as much as $44 billion in economic output, but it expired at the end of 2011, and Congress balked at its renewal. The $9 billion subsidy funded 23,000 solar and wind energy projects and generated a total of $30 billion in investments from private, regional, state and federal actors.

And the Who’s who in clean energy report, notes that the US is at risk of losing its top ranking to China next year as it fosters a “boom and bust” approach to renewable energy.

Experts note that the sudden increase in US investment in clean energy in 2011 was a result of investor panic as they struggle to finish up projects before subsidy incentives expired.

By Jen Alic of Oilprice.com

Jen Alic is a geopolitical analyst, co-founder of ISA Intel in Sarajevo and Tel Aviv, and the former editor-in-chief of ISN Security Watch in Zurich.




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play