Renewable Growth Despite Fiscal Downturn
Clean-energy markets continued to expand rapidly in 2011,
even against a tough economic and political climate, increased industry
consolidation, and downward pricing pressures on manufacturers. Combined global
revenue for solar PV, wind power, and biofuels rose 31 percent over the prior
year, growing from $188.1 billion in 2010 to $246.1 billion last year,
according to the Clean Energy Trends 2012 report issued today by clean-tech
research and advisory firm Clean Edge. The bulk of this expansion came from
double-digit growth rates for both wind and solar deployment globally.
Despite this continued market expansion, clean energy in
2011 will not likely be remembered for its robust growth and global activity,
but for the now-infamous Solyndra bankruptcy.
"Last year saw many in the clean-tech community caught
off guard, as the industry became a modern-day whipping boy," said Ron Pernick,
Clean Edge co-founder and managing director. "The attacks, offered up in sound
bite-sized nuggets delivered more for impact than accuracy, overlooked the fact
that many clean-energy technologies are becoming increasingly cost-competitive,
central to the expansion of energy markets in places like China, Japan, and
Germany, and a critical hedge against more volatile forms of traditional
energy."
Against this backdrop, solar, wind, and biofuels all
reached new market records in 2011. The report's key findings include:
"¢ The global market for solar photovoltaics (including
modules, system components, and installation) increased from $71.2 billion in
2010 to $91.6 billion in 2011. While total market revenues were up 29 percent,
installations climbed more than 69 percent from 15.6 gigawatts in 2010 to more
than 26 GW worldwide last year. This 40-point discrepancy was due to rapidly
declining solar costs. Crystalline solar PV module prices, for example, dropped
more than 40 percent between 2010 and 2011, and Clean Edge projects that the
cost to install solar PV systems will fall from an average of $3.47 per watt
globally in 2011 to $1.28 within the next decade.
"¢ Wind power (new installation capital costs) totaled a
record $71.5 billion in 2011, up 18 percent from $60.5 billion the prior year,
and is projected to reach $116.3 billion in 2021. Last year's global wind power
installations equaled 41.6 GW, the largest year for global installations on
record. China remained the global leader in new installations for the fourth
year in a row, installing more than 40 percent of all global wind capacity, or
18 GW in total.
"¢ Biofuels (global production and wholesale pricing of
ethanol and biodiesel) reached a record $83 billion in 2011, up from $56.4
billion the prior year. Bucking solar and wind's declining cost trends, this
increase was mostly due to a rise in ethanol and biodiesel prices, the result
of higher costs for feedstock commodities "“ mainly sugar for ethanol and
rapeseed and other vegetable oils for biodiesel.
"¢ U.S.-based venture capital investments in clean tech
increased 30 percent from $5.1 billion in 2010 to $6.6 billion in 2011,
according to data provided by Cleantech Group. Clean Edge analysis found that
clean-tech's percentage of total U.S. venture capital investments accounted for
a record 23.2 percent of total U.S. venture activity last year.
The report also outlines five key trends that will impact
clean-energy markets in the coming years:
1. The Few, The Proud, The Green: Military Leads
Clean-Energy Deployment
2. Japan Moves Toward Cleaner Post-Nuclear Future
3. Deep Commercial Building Retrofits Reap Major
Efficiency Savings
4. Waste-to-Resource Breakthroughs Attract Attention -
and Investment
5. New Energy Storage Solutions Embolden the Grid
Jeremy Leggett, Chairman of Solarcentury in the UK
commented in an email to Solar, "Any industry growing volume at 69% and
cutting costs 40% whilst netting nearly $100 billion you would suspect might
have a glittering future. Big Energy needs to understand that this industry is
coming for their market share fast, first in Germany and soon after in other
countries, they should embrace solar technology and cease their pushback in
defence of a ruinous and increasingly expensive status quo. The UK government
is among those who need to understand that their accommodation of Big Energy's
special pleading will cause them to lose out in a job-rich global industry just
as it approaches a mass market."
