Environmental & Economic Benefits
The “green gold rush” is on. Global investment in renewable power surged some sixty percent, to $148 billion recently. Investment in clean energy from wind, solar and biofuels rose 3 x faster in 2007 than predicted from the UN Environmental Program, with wind power attracting $50.2 billion, 1 / 3 of all clean energy investments. Investment in solar panel technology soared by 254 percent to $28.6 billion this past year. This “green gold rush” is propelled because of the soaring fossil-fuel prices, and concerns over fractional co2 emissions that fuel our planets atmosphere.
The world is in an undeniable crossroad. Projections show 3 or 4 times more electric power could be required within the next half a century to support continued development in population and economic output. Clean, renewable sources will be the answer. “Unlike other major energy transitions, for instance wood-to-coal and coal-to-oil, moving from oil to alternatives will probably be forced and rapid,” writes Charles Cresson Wood, President of Post-Petroleum Transportation, a consulting firm.
The Cost of Conventional Energy
In a final six years, uranium prices have moved from $7 a pound to $80 a pound. Coal has moved from $22 a large amount delivered for the plant to $55 a large amount, and gas main has gone from $2 per million BTUs to $12 per million BTUs. Oil went from $20 a barrel to $145 a barrel.
As these dirty energy resources be costly, so follows the delivered valuation on electricity jumping by 70 percent in the past six years in New Jersey and a lot of other states. All analysts expect continued increases in electricity costs.
Americans Want Solar
94% of Americans say it is necessary for the U.S. to build up and use solar power. 72% favor extension of Federal tax credits for renewable technologies, and 77% of Americans want the federal government to make solar energy development a national priority, based on the independent polling firm, Kelton Research, June 10, 2008. “These answers are an undeniable signal to elected leaders that Americans want job-creating solar technology, now,” said Rhone Resch, President with the Solar Energy Industries Association (SEIA).
“Solar development means job growth for Americans, by Americans, within an industry that could benefit America,” said Dr. Gerald Fine, President & CEO of SCHOTT North America. “Rather than depend upon foreign sources for fuel, the U.S. can dream to become the world’s leader in clean energy.”
General Electric, using a goal of investing $6 billion in sustainable energy by 2010, already surpassed the $4 billion mark this July. GE says that within 24 months, alternative energy will make up almost 1 / 4 of its total investments in energy, up from 10% in 2006. Investment banks Morgan Stanley, Merrill Lynch and Goldman Sachs all prefer to take advantage of global fascination with renewable investments. Meanwhile, NYMEX, the New York-based currency markets, recently formed a consortium of economic institutions to produce a Green Exchange to trade Renewable Energy Credits.
The Market Speaks: Renewable Energy Finance Forum Wall Street
Over 600 senior executives attended the 5th annual Renewable Energy Finance Forum (REFF) held this June in New York City. “Each year, we’ve increasingly seen financial leaders on Wall Street recognize electrical power companies as a possible important growth sector to the US economy,” said Michael Eckhart, President in the American Council On Renewable Energy (ACORE) who hosted the forum as well as Euromoney Energy Events. “This new reality has helped launch renewable power investing into mainstream financial arenas and is constantly drive the momentum with the industry,” said Eckhart.
Top analysts forecasted a’s potential in the US, for solar powered energy, wind power and bio-fuels. Speakers also drew awareness of wavering political issues threatening the viability of renewable developments as Congress currently debates the extension of critical investment catalysts much like the Investment Tax Credit plus the Production Tax Credit.
“Wall Street has demonstrated us the full forces of American innovation will be ready to be deployed to fulfill our energy challenges. If government leaders offers a stable long-term climate for investment, the alternative energy sector will spot unprecedented growth, providing extensive economic opportunities and environmental benefits,” said John Geesman, Co-Chair in the ACORE Board of Directors and former Calif. Secretary of Energy.
GE Financial Services and ACORE released a report in the REFF weighing the long-term economic impact of wind development using the up-front cost in the production tax credit. The report found the net present importance of 2007 US wind development may be valued at $250 million a lot more than the price tag to the tax credits, that has been about $9 billion not too long ago. According to the report, the tax credit will pay for itself as a consequence of tax revenue received from wind projects, worker wages and also other taxes. Once the PTC and ITC issues are behind the, another big battle on Capitol Hill will probably be over a carbon-weighted policy like cap and trade, based on presenters.
