European Renewable Energy Revenues Expected to Double Market Boosted by Government Support and Global Warming

European Renewable Energy Revenues Expected to Double Market Boosted by Government Support and Global Warming

Nov 14, 2006 - PR Newswire

LONDON, November 14 /PRNewswire/ -- Increasing awareness about renewable energy and favourable government legislations such as the Directive on Renewable Energy Sources (RES) are expected to drive the European renewable energy market.

New analysis from Frost & Sullivan ( www.financialservices.frost.com</ A>), European Renewable Energy Market - Investment Analysis and Growth Opportunities, reveals this market earned EUR8.89 billion in 2005 and estimates this to reach EUR14.54 billion in 2010.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the European Renewable Energy Market - Investment Analysis and Growth Opportunities, then send an e-mail to Chiara Carella, Corporate Communications, at chiara.carella@frost.com, with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The RES directive of September 2001 introduced different national targets for each member country of the European Union," says Frost & Sullivan Financial Analyst Ms. Saranya Sundaram. "It established indicative targets for the consumption of electricity generated from renewable energy sources, with the overall EU target set at 22 per cent in 2010."

This government support is timely since the renewable energy market is at an important stage of development and requires continued support from consumers and investors. The rising threat of global warming has enhanced interest in clean energy, prompting significant and rapid investment in alternative energy by big companies.

While strategising for this market, energy companies will have to take into account several issues including huge initial capital outlay, development of new transmission and distribution lines, rising export demand and high prices of raw materials. In the solar energy segment, not only are the raw materials prohibitively priced, but are also in short supplies.

"However, solar companies may overcome the shortage of raw materials by undertaking backward integration," notes Sundaram. "This tactic will help them become one of the fastest growing renewable energy sources in Europe for the next 20 years."

Meanwhile, the wind energy segment is going strong, claiming 69.4 per cent of the total renewable energy market in 2005. Companies in this segment have adopted restructuring programmes to counter the slowdown in the installed capacity and this move is expected to pay off by 2008.

European wind energy companies are expected to increase sales to Asian countries in future. The demand from these end users grew by around 40 per cent in 2005, driven mainly by the rising requirements of China and India.

European Renewable Energy Market - Investment Analysis and Growth Opportunities is part of the Financial Services Energy Subscription, which also includes research services in the following markets: Wind energy, Solar energy, Small Hydro Energy, Biomass Energy and Geothermal Energy. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.

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Contact:

Chiara Carella

Corporate Communications

DDI: +44-(0)207-3438314

FAX:+44-(0)207-7303343

E:chiara.carella@frost.com

Trisha Bradley

Corporate Communications - North America

P: +1-210-247-3870

F: +1-210-348-1003

E: trisha.bradley@frost.com