Econintersect: The annual report from REN21 (Renewable Energy Policy Network for the 21st Century) headlines that use of solar and wind energy continued to grow in 2012, even as investment in those technologies declined. While that may sound that the trend might be petering out, examination of the data indicates otherwise.
The total investment in renewable energy declined significantly in 2012. Both solar and wind energy investments were lower than for 2011.
The following three graphs show that the output of solar and winf energy increased significantly in 2012. Solar PV (photovoltaic) increased 41%, solar thermal 61% and wind power 19%, all year-over-year from 2011 to 2012.
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The growth rates over four years (2008-2012) are solar pv 525% (58% compounded annually), solar thermal 426% (51% compounded annually) and wind 131% (23% compounded annually). Thus the power output growth in 2012 for solar pv and wind have slowed from the four year average. However, Worldwatch Institute says that technology cost reductions are largely responsible for the reduction in invetsment, rather than significant slowdown in capacity development. Here is their statement:
While policy uncertainties and changes will likely challenge the growth of solar and wind in the future, these technologies are well poised to grow. Declining solar technology prices, while challenging for current manufacturers, are helping solar to reach near grid-parity in many markets with renewed interests in the CSP sector as well. With the decreasing cost of constructing and maintaining wind farms, wind power is already cost competitive with conventional power energy sources in many markets.
The contribution of renewables to total energy production is still dominated by hydropower. Fossil fuels and nuclear produced more than 3/4 of electrical power in the world.
Another significant observation for Econintersect from the REN21 report is the leading position of China in the implementation of renewable power (hydro excluded), with the primary contribution coming from wind.
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Sources:
- Renewables 2013: Global Status Report (Renewable Energy Policy Network, July 2013)
- Growth of Global Solar and Wind Energy Continues to Outpace Other Technologies (Worldwatch Institute, 30 July 2013)
