Tuesday, April 17, 2012 2:47 PM

Twisting in the Wind

By: Elizabeth Cutright

For a while now, we’ve been hearing that the key to energy independence lies in increased funding for renewable energy and clean energy technology. There have certainly been plenty of lofty promises and ambitious proposals at local, state, and federal levels. And there have been setbacks too, with Solyndra and the Fukushima power plant perhaps the most high-profile examples of clean energy mishaps. But as gas prices escalate and emerging economies in India and China push up demand for fossil fuels, it seems logical that there’s a place for renewable energy and clean tech at the power table. 
So shouldn’t the money follow?
Apparently not, according to date released by both the Clean Energy Pipeline and Bloomberg New Energy Finance. According to the Clean Energy Pipeline, investment in all matter of clean tech is down from 2010. Additionally, venture capital and private equity investment is at its lowest levels since 2009. Bloomberg’s data only paints an even more dismal picture—with investment in clean energy down 28% since the previous quarter and at its lowest since 2009.
One fact affecting financial decisions on a global scale is that most of those closed checkbooks and skittish investors are waiting to see how the US presidential election shakes out. And while there are some positive developments, particularly in South America and other emerging markets, both Bloomberg and Clean Energy Pipeline blame stagnant investment in the US on uncertainty regarding renewable energy policy in the US and Europe, as well as “fall out from renewable energy policy reforms in many European countries.” 
So, what do you think? Is this just a result of an inevitable swing in the pendulum? Is political blustering to blame? Or is this just a byproduct of our current energy policy, which funnels subsidies and tax breaks to traditional power sources, while clean tech and renewable energy are left to twist in the wind?

 

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