Renewable Energy Investments Could Hit $50 Billion by 2011

Following a 2006 boom that tripled renewable energy investments come encouraging results from Renewable Energy Investment in the U.S., according to a report by market research firm Packaged Facts. The firm projects that the U.S. renewable energy (RE) investment market could skyrocket to nearly $50 billion by 2011.

This number assumes that oil prices continue to rise while RE prices continue to fall, and that the market will accept some government intervention. It also ventures that the globe’s increasing energy insecurity is likely to shine the spotlight on RE’s potential.

U.S. investments in RE are following a global trend upwards, in part because many investors have realized just how volatile traditional energy markets can be.

Yet as positive as the outlook may be, RE cannot avoid the growing pains typical to emerging markets. As of mid-2007, there is little agreement on how to standardize and regulate the RE investment market. Several models have been proposed, but no single method has come out on top.

The new study aims to ease some of this confusion, said Tatjana Meerman, with Packaged Facts. “It clearly explains the new investment architecture taking shape to support RE, involving a blending of venture capital and private equity firms, banks, brokers, funds, corporations, and governments,” she said. “It explores the new financial vehicles created to fund RE development, including power purchase agreements, RE credits, and potential carbon markets.”

The report covers four primary RE technology sectors: solar power, wind power, biofuels and fuel cells.

“We expect market momentum should escalate to where we’re seeing double-digit annual growth rates over the next several years,” Meerman said.

The full report is available through Packaged Facts at www.packagedfacts.com.

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