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ARRA Helps US Reach Renewable Energy Targets

01 February 2011 | Renewable Energy Focus USA

Funding made available through the American Recovery and Reinvestment Act (ARRA) from 2009 has made a significant contribution to the US goal of doubling renewable energy capacity over the next two years.

By Renewable Energy Focus staff

Market researcher SBI Energy has looked at ARRA investments and their impact on the renewable energy market to date.

Among Its Key Findings Are:

Domestic manufacturing capacity for solar photovoltaic (PV) modules is forecasted to grow from <1 GW annually in 2008 to 4 GW annually in 2012, according to the Council of Economic Advisors (CEA);
ARRA investments are speeding up the rate of innovation in solar PV helping to drive down the costs of solar panels over the next five years – possibly by 50%;
US wind power capacity grew 40% in 2009 over 2008, and according to CEA, ARRA was responsible for around 6 GW of wind capacity that might not otherwise have been installed in 2009;
US manufacturing capacity for components such as gearboxes, generators and large casted steel parts, has lagged behind demand. The 48C Manufacturing Tax Credit program awarded US$346 million in tax credits to 52 wind manufacturing projects to add to US manufacturing capacity to supply a growing domestic market; and
A US Geothermal Energy Association (GEA) survey indicates a 26% increase in new projects under development in 2009.

The Energy Information Administration (EIA) estimates that US renewable energy generation capacity will increase 32% more than if it had not had ARRA support – reaching 155 GW in 2015.

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Government Incentives are Growing Renewable Energy

Wednesday, February 2, 2011 |The Green Market Blog

The evidence indicates that government investments have significantly helped the US renewable energy market. The American Recovery and Reinvestment Act (ARRA) of 2009 provided $94.8 billion for clean energy. The program was established under section 1603 of ARRA, and provided cash grants covering 10% or 30% of the total cost of developing new renewable energy facilities.

ARRA investments also funded research projects to develop next generation renewable energy technologies. These types of innovations create a cost competitive alternative to dirty sources of electricity while simultaneously creating long-term economic growth.

Due in large part to ARRA, the renewable energy industry survived the worst financial crisis in decades and is making significant progress toward attaining its goal of doubling renewable generation capacity over two years.

According to Gisela Kroess, a director at UniCredit SpA (UCG.MI), “[ARRA incentives have] spurred a lot of the growth we’ve seen,” she said at a renewable-energy finance conference.

Despite Republican opposition, the US Department of the Treasury’s 1603 cash grant program for the solar and wind industries was extended through 2011 as an add-on to the 2010 Tax Relief bill. The extension provides incentives so that developers of new solar and wind farms will continue investing in new projects beyond those already slated for construction.

ARRA Report Card: Two Years Later, is the latest industry study from market research publisher SBI Energy, it examines the ARRA clean energy investments and their impact on the various clean energy markets within the power, transportation, and building sectors.

Solar Energy

The report card indicates that according to forecasts from the Council of Economic Advisors (CEA), ARRA investments will help the domestic manufacturing capacity for solar photovoltaic (PV) modules to grow from less than 1 GW per year in 2008 to nearly 4 GW per year in 2012. Solar EnergyARRA investments are also accelerating the rate of innovation in solar photovoltaics and will drive down the costs of solar panels over the next five years by as much as 50 percent. According to the Solar Energy Industries Association, ARRA has supported more than 1,100 solar projects in 42 states, creating enough new solar capacity to power 200,000 homes. ARRA has resulted in nearly 40 percent growth in the solar power market in 2009 and nearly double in 2010.

Wind Energy

Despite weak economic and investment conditions, US wind power capacity grew 40 percent in 2009 compared to 2008. In July 2010, the CEA reported that ARRA was responsible for approximately 6 GW of wind capacity installation that might not otherwise have occurred in 2009.

Geothermal Energy

An April 2010 U.S. Geothermal Energy Association (GEA) survey indicated a 26% increase in new projects under development in 2009 and concludes that the stimulus funding played an important role in propelling geothermal growth amidst recessionary economic conditions.

Combined Renewable Energy

The Energy Information Administration (EIA) estimates that US renewable generation capacity will increase 32 percent more than without ARRA, reaching 155 GW in 2015.

The results of this report card clearly indicate that government investment has significantly increased America’s renewable generation capacity. Richard Matthews is a consultant, eco-entrepreneur, sustainable investor and writer. He is the owner of THE GREEN MARKET, one of the Web’s most comprehensive resources on the business of the environment. He is also the author of numerous articles on sustainable positioning, green investing, enviro-politics and eco-economics.

(Source: solarfeeds.com)

SBI Energy report: Stimulus allowed U.S. renewable energy to grow during the recession

On January 1^st, 2011 SBI Energy (Rockville, Maryland, U.S.) released a new report examining clean energy investments through the American Recovery and Reinvestment Act of 2009 (ARRA or “stimulus act”) and their impact on markets within the power, transportation and building sectors. The company states that its report: “ARRA Report Card: Two Years Later”, creates a time-capsule analysis of the impact of ARRA investments, which it says include allowing U.S. renewable energy markets to grow during the recession.

“ARRA energy-related funding not only presents potential near-term economic benefits, but also long-term economic and strategic investment and a transformative opportunity for the energy sector,” states the report’s introduction. “Without ARRA investments, it is likely that the pace of renewable energy project construction and manufacturing growth would have otherwise slowed dramatically due the sharp economic and financial downturn over this period.”

SBI Energy says smart grid investments were strategic for renewables

The report notes that at USD$94.8 billion, clean energy investments account for 30% of total ARRA appropriations for innovative infrastructure improvements. The Power Sector received USD$21 billion of that funding, let by almost USD$11 billion in investments in smart grids.

The report notes the strategic significance smart grid investments, stating that the successful implementation of increasing renewable energy generation and other ARRA energy initiatives hinges on successful grid modernization.

The report also examines funding for renewable energy research projects, including solar thin-films and new wind turbine designs. SBI Energy cites data from the U.S. Council of Economic Advisors which states that innovations in solar photovoltaic (PV) technology could drive down the cost of PV modules over the next five years as much as 50%.

Among the data presented, the report identifies and profiles 20 private sector companies that have received ARRA awards under clean energy programs.

SBI Energy is a division of MarketResearch.com Inc. (Rockville, Maryland, U.S.).

2011-02-03| Courtesy: SBI Energy | solarserver.com © Heindl Server GmbH

(Source: sbireports.com)

Future of Global Solar Energy Market Bright after Tumultuous 2009

While growth has been spectacular since 2002, solar power continues to hold just a fractional share—under 1%—of U.S. energy production. Nevertheless, the U.S. has the greatest potential to increase its position in the solar market. The U.S. photovoltaic market was up an estimated 6% in 2009 to almost $4 billion and photovoltaic installations rose to 469 megawatts, according to SBI Energy. An extension of the solar tax credit and new recovery act funding helped keep the U.S. photovoltaic market on its continuing upward trajectory despite the turmoil that affected other solar market sectors globally. By 2014, photovoltaic installations are forecast to reach 7,600 megawatts by building on renewed interest in solar from utilities and the extension of the solar tax credit.

Recovering Nations Increasingly Count on Liquefied Natural Gas as Critical Fuel in Production of Power and Heat

Population growth and economic growth are key factors driving increased demand for energy over the next five years. As population increases, the requirement for institutional services including infrastructure, government and healthcare along with potential demands for various commercial services also increases. In a dynamic twist on the classic domino effect, these increases will lead to more industrial activity such as manufacturing, mining and construction, transportation and the requirement for and ability to afford increased commercial and retail services, larger homes and more energy using appliances and equipment, all of which leads to rising energy requirements. Economic prosperity dictates the degree to which these requirements and potential demands are met.

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Green Building Renovations to Increase Through 2015

Green renovations currently account for about 7% of the total renovation market, and are anticipated to grow to 13% of the market by 2015. Much of the sector’s growth can be attributed to stimulus funding throughout the world for energy efficiency improvements, though green building materials have shown that they are cost effective alternatives to standard building components and are increasingly in demand by businesses and homeowners alike. Rising energy costs and diminishing fuel resources will also continue to push energy efficiency measures, both for construction and for manufacturing.

Clean energy technology investment

Smart Grid Energy consumption is rapidly growing around the world. The modernization of emerging economies (such as India and China) has increased pressures on traditional energy providers (as well as increasing environmental concerns). As fossil fuel reserves dwindle, there is a growing need for clean energy supplies. Clean energies have emerged as an alternative for the fossil fuels, but many technologies still do not display the same level of efficiency and maturity compared to more traditional sources.

Investments remain a key growth factor, as many technologies present technical limitations to practical use. Many existing cleantech technologies cannot compete with coal energy, with is used as the current benchmark when evaluating feasibility. Subsidies are an important key of the clean technologies puzzle, but if these technologies are unable to develop long-term comparables, they run the risk of being relegated to niche products. This is especially true of renewable technologies.

This new SBI Energy reports delves into the global investments patterns dedicated to developing and commercializing these technologies. It covers a significant range of technologies and geographies to gain a greater understanding of the global investments market. After interviewing close to a dozen key stakeholders of the clean energy technology sector and doing extensive documentary research, we were able to build this report.

Exploring investment growth in seven energy producing technologies (solar, wind, biofuel, hydro, geothermal, nuclear and clean coal) and eleven geographies (US, Canada, Brazil, Spain, Germany, UK, France, China, India, Japan and Australia), it is an essential tool for any manager looking for a global clean energy investment perspective within a single document.

Cleantech Energy Investing