Clean Energy Market Growing Despite General Downturn
Industries, especially in the technology sector, are seeing sluggish or negative growth, but many clean energy technologies are experiencing double digit annual growth rates.
Combined, these technologies will grow from just under $10 billion today to $89 billion by 2012, according to a report released today by Clean Edge, Inc., a San Francisco a research and consulting firm.
“We believe that solar power, wind power, and fuel cells will continue to exhibit aggressive annual growth for the foreseeable future,” say Joel Makower and Ron Pernick, founding executives of the research and consulting company.
According to Clean Edge research, solar photovoltaics — including modules, system components, and installation — will grow from a $3.5 billion global industry in 2002 to more than $27.5 billion by 2012.
Wind power is predicted to expand from $5.5 billion in 2002 to approximately $49 billion in 2012. In 2002, some 6,500 megawatts of wind generating capacity was installed around the globe- – the equivalent of more than six nuclear or fossil fueled power plants.
Fuel cells for mobile, stationary, and portable applications will grow from $500 million to $12.5 billion over the next decade, the report says.
“Venture investments in clean energy technology now represent 2.3 percent of total venture activity, up from just 0.7 percent three years ago,” said Makower. “While total investments are down over the last couple of years, clean energy continues to gain a larger portion of the overall market.”
Large corporations are investing in this sector, the Clean Edge report shows. General Electric last year acquired Enron Wind to establish GE Wind Energy, now the largest wind turbine manufacturer in the U.S. BP Solar is introducing Home Solutions, an effort to create mass markets for residential solar photovoltaic systems in the United States and Europe.
The Japanese company Sharp Electronics has doubled its output of solar photovoltaic modules over the past two years, the report says.
Ballard Power Systems, BASF, Duke Energy, Mitsubishi Corp., Shell Hydrogen, and others have joined forces as limited partners in Chrysalix Energy Management, a venture fund focused on hydrogen and fuel cell investments. ChevronTexaco continues to invest in clean technology through its Technology Ventures group as well as through its holdings in Energy Conversion Devices, Clean Edge reports.
While venture capital investments are declining across the board, “clean energy venture investments fared better, and now represent a larger percentage of total venture capital activity than ever before,” Clean Edge reports.
Provided by theEnvironmental News Service.