Market News

 April 30, 2010
Clean Energy Trends 2010 - APRIL UPDATE

Solar PV, Wind, and Biofuel Markets Expand by 11.4 Percent to $139.1 Billion in Collective Global Revenues in 2009

Following one of the worst years in economic history, signs of hope have begun to emerge for the clean-tech sector, with clean energy becoming a driving force for global economic recovery from Beijing to Seoul, and Washington D.C. to Brussels.

The Clean Energy Trends report includes growth projections for the major clean-energy sectors (solar PV, wind, and biofuels), as well as global clean-tech investment and jobs data.

The report's key findings include:
  • In 2009, combined global revenue for the three major clean-energy sectors -- solar photovoltaics (PV), wind power, and biofuels -- grew by 11.4 percent over 2008, reaching $139.1 billion. These three sectors are expected to reach $325.9 billion by 2019.
  • The global production and wholesale pricing of ethanol and biodiesel reached $44.9 billion in 2009 and is projected to grow to $112.5 billion by 2019. In 2009, the biofuels market consisted of more than 23.6 billion gallons of ethanol and biodiesel production worldwide.
  • Wind power (new installation capital costs) is projected to expand from $63.5 billion in 2009 to $114.5 billion in 2019. Last year's global wind power installations reached a record 37,500 MW. China, the first-time global leader in new installations, accounted for more than a third of new installations, with 13,000 MW.
  • Solar PV will grow from a $30.7 billion industry in 2009 to $98.9 billion by 2019. New installations reached almost 6 GW worldwide in 2009, a nearly sixfold increase from five years earlier. But because of rapidly declining solar PV prices, industry revenue in 2009 fell about 20 percent, from $38.5 billion in 2008.
  • U.S.-based venture capital investments in energy technologies declined from $3.2 billion in 2008 to $2.2 billion in 2009. However, clean energy's percentage of total U.S. venture capital investments continued to rise, accounting for 12.5 percent of total activity in 2009. This represented the largest share in the history of the clean-energy asset class.
  • The global solar PV and wind power industries together currently account for a total of more than 830,000 jobs worldwide. By 2019, global industry growth will push the total to more than 3.3 million jobs.
The report also examines many of the issues shaping the clean-energy marketplace, including the failure of nations to reach a global climate accord in Copenhagen; China's seemingly unstoppable rise to global clean-tech dominance; and the growing ubiquity and declining cost of clean-energy technologies. An IPO Watch List tracks clean-technology companies that have recently filed for IPOs, as well as other likely candidates. The report also outlines five key trends that will impact the markets in the coming years:
  • Carbon as a Feedstock: Win-Win or Pipe Dream?
  • Steep PV Price Drops Redefine the Solar Industry
  • Biomass Fires up Utilities and District Heating
  • Clean-Tech Megaprojects See Big Advances -- and Big Challenges
  • High Speed Rail Surges Ahead -- But at What Cost?
U.S. Venture and Global Clean-Energy Investments:

In 2009, U.S.-based venture capital investments in energy technologies declined from $3.2 billion in 2008 to $2.2 billion in 2009, according to Bloomberg New Energy Finance. However, as a percent of total VC investments, energy tech grew from 11.4 percent in 2008 to 12.5 percent in 2009. This represented the largest share in the history of the clean-energy asset class.

The global growth rate in clean-energy investments, across a wide range of investment categories, declined as well, impacted by the overall economic climate. However, government investments helped soften the blow and clean-energy investments still remain at near-historic levels. According to New Energy Finance, new global investment in clean energy declined from $155.4 billion in 2008 to $145.3 billion in 2009. This figure includes investments made by VC and private equity investors; public market activity (IPOs, etc.); project financing; asset financing; government research & development; and corporate research, development, deployment.

Download full report | Charts and tables

About Clean Energy Trends 2010

Clean Edge issues its annual Clean Energy Trends report to track key developments in clean-energy markets. Past reports have been downloaded by tens of thousands of individuals in government, finance, industry, and the media. Clean Energy Trends 2010 is made possible by the support of its sponsors, including premier sponsors Cascadia Capital, Deloitte, and Hobbs & Towne. Major sponsors include Akin Gump, Bloomberg New Energy Finance, Blue Practice, E2, and Mintz Levin. The report can be downloaded free of charge at www.cleanedge.com.