According to a new report from market research firm Packaged Facts, the renewable energy investment market could skyrocket to nearly $50 billion by 2011.
Report projections are based on key assumptions, including oil prices continuing to rise; renewable energy prices continuing to fall; government intervention in markets being once again viewed favorably; and increasing energy insecurity leading to greater awareness of renewable energy potential. U.S. investments in renewable energy are following closely on the heels of an upward global trend, coupled with a sudden awakening to the volatility of traditional energy markets, the company says.
However, the report notes, the growing pains typical of emerging markets could put a damper on industry growth. As of mid-2007, no agreement exists on standard renewable energy investment market parameters and terms. While several models have been proposed regarding how to intelligently define terms and set boundaries, these models have yet to be reconciled.
"This is the first study to demystify the financial complexities surrounding this rapidly evolving market," says Tatjana Meerman, the publisher of Packaged Facts." It clearly explains the new investment architecture taking shape to support renewable energy, involving a blending of venture capital and private equity firms, banks, brokers, funds, corporations and governments."
"Renewable Energy Investment in the U.S." covers four primary renewable energy technology sectors: solar power, wind power, biofuels and fuel cells.