March 26, 2008 The global use of renewable energy sources continued its rapid growth in 2007 according to two new reports, as analyzed by the US Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE)
The Renewable Energy Network for the 21st Century (REN21), in collaboration with the Worldwatch Institute, published the Renewables 2007 Global Status Report (.pdf file), which paints an encouraging picture of rapidly expanding renewable energy markets, policies, industries, and rural applications around the world.
According to the REN21 report, the addition of 40 gigawatts of new renewable energy capacity throughout the world in 2007 brings the world’s renewable energy generating capacity to more than a thousand gigawatts, including large hydropower.
Excluding large hydropower, renewable generating capacity grew by 33 gigawatts in 2007 to a total of 240 gigawatts, a 16% annual growth rate. Increasing 28% to 95 gigawatts, wind power is the largest of the newer renewable energy sources, while grid-connected solar photovoltaic systems increased by 52%, reaching 7.8 gigawatts.
Among other renewable energy sources, there are now enough solar hot water systems to produce 128 gigawatts of thermal energy. The US now leads the world in new wind capacity added each year and in annual ethanol production, and it also features the largest installed capacities for geothermal and biomass energy power plants.
While the REN21 report estimates last year’s investments in renewable energy at $71 billion, analysts at New Energy Finance have increased their estimate to $148.4 billion, more than double the REN21 estimate and a significant increase from New Energy Finance’s previous estimate of $117.2 billion, which was released in January. The new figure, still considered conservative, includes transactions made near the end of the year but not disclosed until
Overall new investment in clean energy—excluding mergers, acquisitions, and buy-outshas surged from $33.4 billion in 2004, to $58.7 billion in 2005, $92.6 billion in 2006, and $148.4 billion in 2007, says New Energy Finance. This expansion has reportedly occurred across all the main categories of investment.
Among the key factors pushing these numbers sharply upward in 2007 were government policies around the world to promote renewable power and cleaner fuels, oil prices approaching $100 a barrel, and rising corporate and investor awareness of the opportunities in clean energy, notes New Energy Finance.
