But who’s spending what? The good news is investment is expected to climb by 23% to $200 billion. The bad news is that China is leading the charge. Maintaining this level of spending will also be on shaky ground after 2011 when stimulus funds run out. Here’s a few excerpts below.
“Renewable energy investment may rise by 23 percent this year as government stimulus funds mainly in the U.S. and Europe are spent wind turbines and solar panels.
Spending may rise to between $175 billion and $200 billion this year from $162 billion in 2009, said Bloomberg New Energy Finance Chief Executive Officer Michael Liebreich today.
“There’s a big bulge of stimulus money coming through this year,” he said during a press conference at the consultant’s annual conference in London. “The question is what happens when they switch off the stimulus.”
“China invested $34.5 billion in wind turbines, solar panels and other low-carbon energy technologies in 2009, Bloomberg New Energy Finance said today in London. The U.S. spent about half as much last year, or $18.6 billion, slipping to second.”
““The rise of China as an investor in clean energy is a striking development that reflects in part Beijing’s determination to be at the forefront of manufacturing key technologies such as wind turbines and solar PV modules,” said Liebreich. “Investment in the U.S. was held back last year by a shortage of long-term private sector finance for projects.””
“Worldwide, only 9 percent of the $182 billion of global economic stimulus packages earmarked for clean energy had been spent by the end of last year, New Energy Finance estimates. Two-thirds of the spending is scheduled for this year and next, which follows last year’s $162 billion.
China, the world’s third-largest economy, boosted the installed capacity of renewable energy projects to 52.5 gigawatts, mainly in the form of wind turbines and biomass plants. That’s the equivalent of 52 medium-sized coal plants. Low-carbon energy now accounts for 4 percent of the total.
The U.S. still leads the world in installed renewable capacity at 53.4 gigawatts, or 4 percent of the total. Spending this year is poised to climb, reversing last year’s 40 percent decline, with much of the $66 billion of the clean-energy stimulus money being spent, New Energy Finance said.”