QOTD: Renewables Investing Passed Fossil Fuels in 2008

You can take this as further evidence of economic derangement in 2008, or of an energy transition inflection point, or something screwy because of oil’s roller-coaster, or even just a back-door sign of outsized stimulus, but this quote from a recent UNEP sustainable energy investing report caught my attention:

2008 was the first year that new power generation investment in renewables was greater than invest in fossil-fueled technologies.

Specifically, according to the report, $140-billion went into renewables worldwide in 2008, while $110-billion went into fossil fuels.

Source:

Global Trends in Sustainable Energy Investing, 2009
UNEP

Comments

[Mad Hedge F...:]

Isn't that amazing? If the 2009 Clean Energy Bill passes, it is going to pave the way for major structural changes to the US economy, which few of the non-engineering types voting for it in Congress understand. The bill encourages electric power utilities to switch to renewables, upgrade the electric power grid, and put in place a cap and trade system which places an enormous burden on the power industry to go green (see www.madhedgefundtrader...). The bill is expected to sail through the House, but faces a major fight in the Senate, where the administration is going to have to get all of their ducks in a row for it to pass. The bill provides the legal structure to spend that $100 billion for alternative energy already passed in the stimulus bill. In his cheerleading press conference for the bill, Obama correctly declared that dependence on hydrocarbons was jeopardizing our national security. He also cleverly described this as a massive creator of high tech jobs that can’t be exported. I’m not highlighting this because I live in California, wear sandals all year, drive a Prius, or have a refrigerator stuffed as if a giant gerbil does my shopping. Since this economic crisis started, the key has been to buy whatever the government is buying, and since they are going into alternatives in a big way, you want to be right ahead of them (see my solar piece at www.madhedgefundtrader...). Time to add more alternative energy names to your list to buy on dips. Look at American Superconductor (AMSC), which is involved in advanced wind turbine designs and electric power grid upgrades. Also take a peek at Covanta (CVA), an established business that profitably burns trash to create electricity.

Jun 28 03:51 PM

[A Barrel Full:]

In part this simply shows that there is a huge untapped potential in renewables that doesn't exist in traditional power. It also reflects uncertainty about carbon costs and huge subsidies to green alternatives.

Jun 29 03:00 AM

[jerrydd:]

The future is RE as noted by last yr Wind was the largest new electric energy source.

Next is solar thermal which is getting cheaper while fossil fuels are getting more expensive.

These on homes are even more cost effective as their energy costs are higher and ST/CSP not only provides electricity but hot water and heat at a reasonable price once in real mass production. These can be run on wood pellets or any other fuel when the sun doesn't shine and power or heat is needed.

With the cost of fossil fuels rising these changes are here to stay.

Hard to play though but BYD in China is one as EV's will be the future choice because they get 3x's the miles/ unit of energy vs ICE's. Plus they are simple and the materials for the batteries are cheap, plentiful, Lithium, Fe, Phosphate. I now buy Li batteries for EV's for less than sealed lead batteries.

GE is probably well suited as their eff turbines both steam and gas together make 60% eff powerplants instead of 40% eff, their wind and sodium batteries on utility scale are market leaders or will be. A big market I hope they do is low temp Rankine engines/generators which run off of steam condensers used on every steam generator including Nuke where this is now one of their biggest costs it would turn into a money, energy maker.

Putting a gas turbine on front of every coal/NG steam plant with a Rankine generator on the steam condenser could make such plants 70% eff! One could cut their fuel cost by 60%.

Jun 29 11:31 AM

[jerrydd:]

As one can buy good 1kw windgens for $1k or build them for $300 in retail parts. More than $3k/kw installed with an inverter is a rip off.

And a lot more than 13million homes can use them, more like 50 million plus even more business buildings.

Billp your spamming prosefight is bad and your info is either off topic or not accurate.

Jun 29 05:34 PM