[NYTr] Investment in "renewables" surges to meet demand for alternative energy

[All the News That Doesn't Fit]

[The next bubble... with little real awareness of the cost of such
"renewables" as biofuels deployed heedlessly. -NYTr] 

sent by tsimonds (activ-l) - Aug 13, 2007

The Guardian - Aug 6, 2007
http://www.guardian.co.uk/environment/2007/aug/06/energy.energy

Investment in renewables surges to meet demand for alternative energy

by Ashley Seager

Total global investment in renewable energy is likely to increase more
than sevenfold in the next decade to reach #375bn, research out today
suggests.

The latest Ernst & Young "renewable energy country attractiveness
index" - which tracks investment in renewables such as wind, wave and
solar power - said demand for clean energy is surging at unprecedented
rates, driven by government incentives, and had reached #50bn in 2006.

Jonathan Johns, head of renewable energy at Ernst & Young, said he saw
no sign of the investment cooling despite uncertainties in some global
markets. "Competition for assets is intense and trade players are
increasingly battling for supply chain presence. Further takeover
speculation has fuelled share price rises this year and while global
trading markets have been tumbling, energy stocks appear to have escaped
relatively unscathed for the time being."

The renewables industry is growing at 20% to 30% a year, he said, and
mergers would increase as firms sought greater profitability and new
entrants from the tiger economies move into the market.

A recent report from the UN environment programme said investment in
renewables such as wind, solar and biomass jumped 43% last year and may
be about to increase by much more substantial amounts. It concluded that
clean energy could provide almost a quarter of the world's electricity
by 2030.

Ernst & Young's all renewables index, which scores investment for all
forms of renewable energy, shows that the US continues to be the global
leader - a position it has comfortably held since last autumn. In the
last three months the US has seen a spate of legislative activity at
state and federal level to boost renewables.

Over the quarter the index remained fairly static. The biggest change
was the three-place rise for Britain from fifth to second position
(shared with India and Spain) after investors received a fillip from
the energy white paper, which put renewables firmly at the centre of
future energy policy.

The report noted, though, that Germany was likely to climb back up the
table from fifth position if it pushes through ambitious new renewables
targets.

Overall Mr Johns said the outlook for the sector is very positive,
though critical mass is becoming imperative for those companies that
are serious about being real players in the market.

"The ability to acquire and commercialize new technologies, enter new
markets and diversify across the industry requires a strong balance
sheet, a track record of raising finance for new acquisitions and a
dynamic approach - it's not for the faint-hearted."