BIG MONEY IN NEW ENERGY

2010 revenues generated by renewable energy – US$60.2bn in the US
Carmel Doyle, 9 March 2011 (Silicon Republic)

"…[A new report] says that to optimise smart grid potential in the US, more renewable resources need to be tapped into for electricity generation, with new renewable technology market opportunities abounding.

"…[Renewable Energy & the Smart Grid from Zpryme and ICP] looks at the smart grid spectrum and how it can add intelligence and next-gen capabilities to the energy ecosystem, while it also examines the outlook for the renewable technology market in the US over the coming years, specifically delving into five renewable energy areas: wind, solar, hydro, biomass and geothermal…"

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"With renewable energy projected to increase by 40.4pc between now and 2015 in the US, the report has identified that renewable energy contributed 462bn kilowatt-hours (kWh) of the total 4,030bn kWh generated by all fuel sources that included coal, petroleum, natural gas, nuclear and renewable energy in 2010…[and projects] that 2010 revenues generated by renewable energy will be $60.2bn, which is 16.9pc of the total…[By 2015, that is projected to grow] to US$87.3bn, capturing 21.8pc with a 7.7pc compound annual growth rate (CAGR) for revenues from renewable electricity generation…

"Comparing solar, wind and conventional hydro power to strategic business units (SBU) of a corporation, the report makes the analogy that, right now, solar would be a question mark, wind would a rising star and conventional hydro power would be a cash cow…[The report shows] how grid-tied systems around the US are growing at a faster rate than that of off-grid systems, which they say should provide a market opportunity, even though the US still lags behind Europe in on-grid systems…"

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"According to the report…The US renewable energy manufacturing, equipment and technology market is projected to reach US$127.5bn in 2010, and to reach US$263.2bn in 2015 with a CAGR of 15.3pc…The photovoltaic (PV) market will continue to be dominated by crystalline silicon technology, but thin film and concentrating solar power (CSP) will continue to gain in market share…The lion‘s share of wind energy will continue being onshore…[but] offshore wind technology is making huge strides in Europe…[and] spurring more interest…in the US…[and] if the federal government offered more generous incentives in the US, there would be a multiplier effect on the renewable energy market…"

[Report authors Jon Arnold (ICP Strategies) and Jason Rodriguez and Mark Gomez (Zpryme):] “Our view is that the US renewable energy market faces significant structural barriers, but by borrowing best practices from industries such as telecom, there are promising near-term opportunities for utilities that are prepared to take a more market-centric approach to their business…To optimise the benefits of the smart grid in the US, more renewable resources need to be tapped for electricity generation…”