Renewables industry facing growing pains
May 30, 2013 | By
Barbara Vergetis Lundin
Ernst & Young has released its renewable energy attractiveness index, in which the U.S. regains the top spot, as high barriers to entry for external investors moves China into second place. Energy demand, natural resources, technology costs and access to finance and global competitiveness are key influences for investors, according to the research.
"Market fundamentals, such as energy demand growth, security of energy supply and the affordability of renewable energy (relative to other sources), feature as some of the most prominent drivers of renewable energy growth today," said Ben Warren, Ernst & Young UK Environmental Finance Leader and Global Cleantech Transactions leader. Global annual clean energy investment totaled $269 billion in 2012, representing a fivefold increase from 2004. The sector now competes for investment with more traditional energy sources, and new technologies -- such as solar panels, biomass boilers and mini wind turbines -- are enabling energy users to run their own small power plants, changing the way businesses and consumers think about energy. "The renewable energy landscape today is truly global. From Japan and Southeast Asia to Africa and South America, renewable energy is a viable energy source that is gaining a solid and growing share in the energy mix," said Gil Forer, Ernst & Young's Global Cleantech leader. But the renewables industry is facing growing pains. "Not only is the future a place with less government support, but industry players also have to fight for market share across all corners of the globe and with some worrying signs of trade barriers emerging," Forer said. "For an industry that is still relatively new, this is a seriously challenging time. Leaders need to be conversant in international business, conscious of global politics, and clever in innovating new business models and business relationships to win in an increasingly global competitive world." For more: Related Articles: Sign up for our FREE newsletter for more news like this sent to your inbox! © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com http://www.fierceenergy.com/story/renewables-industry-facing-growing-pains/2013-05-30 |