Investments in renewables could hit $750bn by 2016
According to Ernst & Young, one of the largest auditing companies in the world, the global renewable energies market could be the subject of investments worth up to USD 750 billions by 2016 (559 billions Euros).
In 2006, the global investments in these energy sources were of USD 100 billions.
According to the United Nations, renewables’ investments are accounting for 18 percent of total investments in the energy sector.
Ernst & Young states :
Demand for renewable energy is growing at unprecedented rates, driven by competing government incentives. In 2006 investment reached US$100 billion and Jonathan Johns, Head of Renewable Energy at Ernst & Young, says he sees no signs of these levels cooling off despite the uncertainties in some global markets.
Johns says, “Competition for assets is intense and trade players are increasingly battling for supply chain presence. Further takeover speculation has fueled share price rises this year and while global trading markets have been tumbling, energy stocks appear to have escaped relatively unscathed for the time being.”
He adds, “Given the industry’s current growth rates of 20% to 30%, the drive from manufacturers for greater profitability, and new entrants coming into the market from the tiger economies, possibly even Japan, M&A activity is likely to filter down the supply chain adding a premium for key assets such as gearbox and bearing manufacturers.”
The All Renewables Index, which scores investment for all forms of renewable energy, from solar to wind and biomass, shows that the US continues to be the global leader — a position it has comfortably held since last autumn.
Sources and further reading :
- Actu-Environnement : 750 milliards de dollars d’investissements d’ici 2016 pour les énergies renouvelables ;
- Enrst & Young press release : Global Investment in Renewable Energy to Hit $750bn by 2016
- Download this edition of the Ernst & Young Renewable Energy Country Attractiveness Indices directly from their page (1.7 mb)