Investment in renewable energy technology is supposed to solve everything from high unemployment rates to global warming. In the US, candidates are battling over who is the "greenest" presidential contender, and unrest in the Middle East has fossil-fuel consumers constantly on edge. But the region that stepped up alternative-energy investments the most in 2011 was India.
According to the Worldwatch Institute, an independent research organization on energy, resources, and the environment, India's investment in solar and wind power increased by 52 percent from 2010 -- the highest growth rate for any single country.
Although total investments from developing countries -- which the Institute identifies as China, India, and Brazil -- lagged industrial nations, the sum reached $89 billion last year. Total new investments in renewable power and fuels reached $257 billion in 2011, with industrial nations accounting for $168 billion overall, the Institute reports.
The US and China are striving to become leaders in alternative energy technology and are embroiled in a trade battle over solar cells and panels. China continues to invest heavily in alternative energy, with $52.2 billion in new investments in 2011 -- the highest for any single country. In terms of the pace of growth, however, the United States scored a 57 percent increase over 2010 levels with $50.8 billion in new investment, outpacing all countries except India's 62 percent.
Other highlights from the report:
Driven by 52 percent growth, solar technologies led all renewable energy investment by technology, taking over the top spot previously held by the wind sector.
Investments in small-scale distributed generation power projects (with capacities of less than 1 megawatt) grew by 25 percent to $75.8 billion in 2011.
Total R&D investment in renewable energy technologies fell 16 percent to $8.3 billion in 2011; investments in venture capital and private equity fell by 6 percent to $5 billion in 2011; while asset financing -- an indicator of current sector activity -- amounted to $164 billion in 2011, an increase from $139 billion in 2010.
Initial trends from the first two quarters of 2012 indicate that investment in the renewables sector has fallen behind the impressive pace set last year.
Solar continues to be the leading contender in renewable energy and a key market for high tech. On the upside for consumers, costs to deliver alternative energies are dropping. That correlates to a downside for manufacturers of solar cells and related equipment, however, that are dropping prices to remain competitive.
"Solar continues to be the leading contender in renewable energy and a key market for high tech"
There are two key factors for solar technology to continually be successful:
The first is the improvement of sun/electric rate factor (if I am not wrong today we have a 20% rate) that means only 20% of the sun's energy transforms to electric.
The second factor effects also the first one is the cost per cell (the sum of cells make a photovoltaic panel)
Nemos, I know in some of the countries government and other funding agencies are giving subsidies for solar plants. In my country, government is providing a subsidy of 60% of the total investment cost for solar plants. More over they have made the provision to buy back energy from private plants to the central grid. I think it’s a good business model and other countries can follow the same model.
I guess Governments can pay a big role in enhancing solar markets and implementing it. They can try making it mandatory to use solar panels in all residential appartments in liew of geysers or inverters. Like now they are making it a law that every apprtment building must have a bio gas plant on their own to handle the organic waste. Municipal corporations will not take the organic wastes from the appartment complexes. Well we have only two months to set it up but we have to do it.
FScot: I had the same question which I was trying to dodge because it was not mentioned in the report summary. You have to buy the report or subscribe to monthly reports for that elusive number. However, of $71 billion invested by India, Brazil and China; China accounted for around $50 billion. (Text below) So I'm going with "less than $20 billion" for India.
In contrast, the 35 percent of global new investment that went to developing countries increased 10 percent, to $89 billion.5 Of that sum, China, India, and Brazil accounted for $71 billion in total investment.
"Investment in renewable energy technology is supposed to solve everything from high unemployment rates to global warming"
Barbara, there is an acute shortage of energy all over the world and it can be cove up by using the renewal energy sources. After last year's disaster in Japan's atomic reactor, some of the countries stopped expansion of nuclear reactors and planning to invest more on renewal energy sources. But I don't know whether it can reduce the unemployment rate.
Hi Jacob: Green tech is one of the markets in the US that is supposed to create jobs, but right now I'd say most are still in R&D. Several solar panel/cell manufacturers went bankrupt this year and last and several others moved manufacturing offshore. Once the technology is well established, then there is expectation that infrastructre will be upgraded and additional jobs will be created. In particular, solar relies on construction and specilized installation in most places in the US. It is not happening fast enough, though, and in the meantime the US, at least, is looking for new sources of fossil fuel.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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