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Market News

 June 24, 2009
Live from the Renewable Energy Finance Forum

 

I spent yesterday elbow deep in breakout sessions at the sixth annual Renewable Energy Finance Forum (REFF) Wall Street.  So did 700 other top level cleantech executives, the "smart money" if you will.

But rather than whittle down my eight pages of notes into a lengthy piece about the worldly state of the industry-which I will do eventually-I'd rather offer you a simple set of statistics today that can paint the picture just as clearly.

These are numbers pulled right from my notes, in no particular order.  They come from various primary sources, from Under Secretary of Energy Kristina Johnson to Executive Director of the International Energy Agency (IEA) Nobuo Tanaka.  

If you don't want to invest in cleantech after reading these statistics, you may need to check your pulse.

Cleantech Statistics from the REFF Wall Street

$56 billion.  That's the amount of grants and tax incentives available to the renewable energy and efficiency industries-just in the U.S.

75%.  That's the percentage growth of global renewable energy capacity since 2004.

2.8 gigawatts.  The amount of wind energy installed in the first quarter of 2009.  

1.4 gigawatts.  The amount of wind energy installed in the first quarter of 2008, pre-recession.

42%.  The amount of new power capacity installed in 2008 attributed to wind energy.

83%.  The current U.S. administration's carbon dioxide reduction goal set for 2050.

3.6 million barrels.  The amount of oil we import from the Middle East every single day.

2.5%.  Renewable energy's share of the energy mix in 2008, less hydropower.

30%.  Renewable energy's share of the energy mix forecast for 2030.  Growth, anyone?

85,000 gigawatt-hours.  The amount of annual energy production potential for small scale hydro.

$0.05 per kilowatt-hour.  The target cost for solar energy by 2020.

$50 million.  Amount of funding for DoE home geothermal heat pump initiatives.

$100 billion.  Amount spent every year on heating and cooling buildings.

$6.5 billion.  Amount spent every year powering refrigerators.

18%.  The percentage lights attribute to a buildings energy cost.

75%. The efficiency advantage of LED and CFL lights.

87%.  The percentage of CO2 attributed to energy production per the EIA.

97%.  The percentage increase in CO2 emissions coming from non-OECD countries by 2030 per the EIA.  75% will come from China, India, and the Middle East alone.

$134 billion.  The amount of new investment capital coming cleantech's way by 2011.

$217 billion.  The amount of new investment capital coming cleantech's way by 2012.

$184 billion.  The amount of stimulus dollars afforded cleantech by global governments-China leads.

25%.  Percentage of GE Energy Financial Services' portfolio dedicated to clean energy by 2010.

Bottom Line

The only statistic not included is how much your portfolio stands to benefit by investing in the mega-trends emerging from the data above.

The bottom line is that the use of renewable energy will double several times over in the next 15 to 20 years, from 2.5% of the global energy mix to well over 15%, attracting trillions of dollars in capital.

By default, that means other fuels will lose market share.  

Where do you want your money:  in the energy sector certain to at least quadruple or in the energy sectors whose market share is slipping with every panel and turbine installed?

Scarcity may earn you a few bucks in the fossil fuels market.  But fundamental solid growth will make you a killing the cleantech sector.

I'm proving it each and every day-to the tune of 25 closed double digit winners already this year.  Many more are on the way.

You can read about the next three winners right here.

Call it like you see it,

nick hodge

Nick