Renewable energy markets show strong growth
Renewable energy has become big business, directly competing with conventional fuels in power generation, hot-water and space heating, transportation fuels, and rural off-grid energy supplies.
Global investments in renewable energy—excluding large hydropower—rose to a record $30 billion in 2004, compared with $150 billion in investments in the conventional power sector, according to a new report by the Renewable Energy Policy Network for the 21st Century (REN21), a global policy network.
Overall, small hydro, biomass, wind, solar, geothermal, and biofuels accounted for 160 gigawatts, making up about 4% of global power sector capacity. Nearly half that amount was generated in developing countries, the report finds. Large hydropower attracted an additional $20–25 billion in investments in 2004, primarily in developing countries, and comprised 16% of global electricity generation.
Grid-connected solar photovoltaic is the fastest-growing energy technology worldwide, with capacity increasing by 60% annually from 2000 to 2004, the REN21 assessment concludes. Wind power came in second, growing by 28% per year, and biofuels production exceeded 33 billion liters in 2004, displacing about 3% of the 1200 billion liters of gasoline consumed globally.
At least 48 countries—14 of them in the developing world—now have some type of renewable energy promotion policy, according to the report. Market leaders in 2004 included Brazil in biofuels, China in solar hot water, Germany in solar electricity, and Spain in wind power.
