U.S. overtakes China in clean energy race

 

 

By Barbara Vergetis Lundin

According to a new report from Pew Environment Group, the United States has reclaimed first place in the global clean energy race. The U.S. has trailed China since 2009.

The U.S. invested $48 billion in clean energy in 2011, a 42 percent increase over 2010. Total U.S. installed renewable energy capacity in the U.S. at the end of 2011 was 93 GW -- second to China.

"In 2011, the global clean energy sector grew again, the U.S. reclaimed its lead as the top destination for private investment, and consumers reaped the rewards of significantly reduced prices for clean energy technologies, such as solar panels, which are now nearly 50 percent cheaper than a year ago," said Phyllis Cuttino, Director of Pew's Clean Energy Program. "And yet, the yo-yo effect of U.S. clean energy policy hurts the ability of the United States to consistently compete and turn U.S.-led innovation into manufacturing, deployment, and export opportunities. Creative, stable and transparent policies remain a critical signal to private investors."

For example, Treasury grants for solar have been allowed to expire, and the Department of Energy's loan guarantee programs have been cut. Also, the production tax credit expires at the end of this year.

"Solar installations drove most of the activity last year as the falling price of photovoltaic modules, now 75 percent lower than three years ago, more than compensated for weakening clean energy support mechanisms in a number of parts of the world," said Michael Liebreich, CEO of Bloomberg New Energy Finance, Pew's research partner.

Globally, investment in clean energy grew to a record $263 billion in 2011, a 6.5 percent increase over the previous year, according to the Pew Charitable Trusts.  


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