The population of the world continues to grow, as does the average
standard of living, increasing demand for food, water and energy and placing
increasing pressure on the environment. The population of the world doubled
from 3.2 billion in 1962 to 6.4 billion in 2005 and is forecast to grow to 9.2
billion in 2050.
Supplies of oil, gas, coal and uranium are forecast to peak as reserves
are depleted. At the same time, fear of climate change is putting pressure on
the energy sector to move away from carbon burning to nuclear, solar and other
environmentally friendly energy sources.
Renewable energy sources include biomass, including biofuels, sun
(solar, wind and wave), hydro and geothermal. According to the IEA, renewable
energies, mostly biomass, met 13.2% of world energy demand in 2004 and could
rise to 13.7% by 2030.
According to the IEA, the main renewable sources harnessed in 2006
were:
| Source |
% |
| Solid biomass |
76.8% |
| Other biomass |
2.6% |
| Hydro |
16.7% |
| Wind |
0.5% |
| Solar / Tidal |
0.3% |
| Geothermal |
3.2% |
Iceland, Italy and New Zealand are among the leaders in harnessing
geothermal power. Kenya and Ethiopia are Africa's leading geothermal energy
producers but the power produced, 132 MW and 5 MW respectively, is minimal.
The EC estimates the cost per MWh for solar (Euro 150 to 450), wind (50
to 180), hydro (30 to 90), biomass (30 to 80), natural gas (40 to 70), oil
(60), coal (45 to 55) and nuclear (45). The kg CO2 equivalent per MWh is solar
(100), wind (10 to 30), hydro (5 to 20), biomass (30), natural gas (400 to
440), oil (550), coal (750 to 800) and nuclear (15).
In 2005, the global wind and solar markets reached US$ 11.8 billion, up
47% on 2004, and US$ 11.2 billion, up 55%, respectively. The clean energy
market is predicted to grow from US$ 39.9 billion in 2006 to US$ 167.2 billion
by 2015. At end 2006, 20% of Danish electricity and 5% of UK electricity came
from renewables.
The 2006 Renewables Global Status Report showed Germany and China lead
in renewable energy investments. By April 2007, the Chinese government had
approved 383 wind, hydro and biofuels projects.
In November 2007, in order to increase renewable's share of energy from
12% to 25 to 30% in 2020, Germany introduced measures including subsidies for
wind power and rules stipulating new or renovated houses must heat water using
solar, geothermal or other renewable sources. The government estimates new
measures would cost Euro 31 billion and generate energy savings of Euro 36.3
billion.
Venture capital and private equity concerns invested more than US$ 18
billion in renewable energy in 2006 and more than double that in 2007. During
2006 US$ 1.28 billion of venture capital was invested in renewable energy
technologies. The number of listed renewable energy companies with market cap
of more than US$ 40 million increased from 60 to 85. According to Project
Finance International, since 2000 companies have raised more than US$ 35
billion to build and develop renewables, of which more than 50% is for wind
power projects.
GE sales of environmental products increased from US$ 6.2 billion in
2004 to US$ 10.1 billion in 2005. In May 2007, GE reported doubling the sales
of Green products over two years to US$ 12 billion.
