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01 February 2011 | Renewable Energy Focus USA
By Renewable Energy Focus staff
Market researcher SBI Energy has looked at ARRA investments and their impact on the renewable energy market to date.
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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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.
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.
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.
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.
On January 1st, 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
O Thank Heaven it’s 2011
The flurry of predictions made at the end of 2010 for the clean energy sector has created an exciting new buzz for 2011. Significantly advancing the U.S. toward a clean energy economy, 2011 will likely bring a spike in financial investing - now that Wall Street has claimed to have ‘figured out’ clean energy, along with an extension in tax credits that encourage more businesses to adopt ‘green’ practices and the creation of thousands of ‘green’ employment opportunities. Meanwhile, the clean energy manufacturing industry can expect to receive an additional $2.5 billion in funding in 2011 from the Recovery Act (ARRA). And, letting the good news roll, the global clean power sector is forecasted to see growth this year and continue its upward trend straight through 2020 - ultimately becoming a $2.3 trillion industry.
In just 18 months the U.S. spent more than $51 billion in public funding on clean energy project initiatives, research science, installations and infrastructure. Not enough to approach sustainability, but a significant play nonetheless, as many countries have made.
It’s also reported that U.S. is on track for its 2012 goal of doubling its renewable generation capacity. How old is that goal, anyway? What are our new goals? Where are the new clean energy policies and standards businesses need to move forward in their commitments and goals?
As the American public, we know a clean economy can’t arrive bagged and sterile in a flash while we wait. Our order requires recipes and ingredients yet to be known. It will be years in the making, always in the unfolding if we are wise, rather than slacking again to this level of paucity by negligence. So let’s celebrate what this bright New Year will bring in terms of building blocks for our future.
SBI Energy believes the power players are in the following sectors:
• Energy storage
• Rare earth minerals impact on renewable power generation
• Industrial equipment manufacturing, components
• Carbon and coal treatments, technologies
• Nuclear power applications development
• Substation automation
• Smart grid advancement
2011 is set to advance the clean energy industry. We stake our research on it. Cheers to progress and patience!