US DOE Energy Efficiency & Renewable Energy (EERE)
Markets for solar energy, wind energy, and fuel cells are poised to grow from $16 billion in global revenues in 2004 to more than $100 billion by 2014, according to a report released today by Clean Edge, Inc., an energy research and publishing firm. Clean Edge projects that markets for solar photovoltaics (modules, system components, and installations) will grow from $7.2 billion in 2004 to $39.2 billion by 2014; wind power installations will expand from $8 billion last year to $48.1 billion in 2014; and fuel cells and distributed hydrogen will grow from $900 million to $15.1 billion over the next decade.
With oil prices at $60 a barrel, natural gas rising to more than $7 per million BTUs and eastern coal up to $60 per ton, average U.S. electricity prices, by state, now range from 5 cents to 16 cents per kilowatt hour (kwh). In some states, that's a 25% jump since 1995. At the same time, technological improvements and economies of scale have significantly lowered the costs of alternatives. Wind-power costs have declined to as little as 3 cents to 5 cents per kwh, making wind cost competitive.
Factors that are influencing clean-energy markets and tracks key trends, including how biomass is becoming a significant fuel source being used by such customers as the U.S. Army, Navy, Air Force, and Marines; how centralized solar farms located in sun-rich areas could power entire cities; and how the boom in green buildings is spurring development of technologies that are energy efficient, less toxic, and made from recycled and renewable materials.
Experts say the solar PV market will grow from the current US$7 billion to US$30 billion in 2010. With annual growth rates exceeding 30%, and expanding profit margins, solar PV is in transition to becoming one of the world's fast-growth, profitable industries. Together, the world's 24 publicly traded solar companies saw their shares jump by almost 185% in 2004. Customer demand is so high that solar manufacturers are completely sold out and are ramping up to meet demand.
Venture capital (VC) investments in U.S.-based energy-tech companies increased from $509 million in 2003 to $520 million in 2004. These investments, primarily in distributed energy sources, energy intelligence, power reliability, and related services, represented nearly 3% of total VC investments in the U.S. in 2004. In its so-called Green Wave Initiative, California plans to use $500 million from two state pension funds, CalPERS and CalSTRS, to seed proposals for alternative energy. Renewable energy and energy-efficiency technologies look set to command an increasing share of investment dollars and markets.