Tag Archives: renewable
UN: Developing Nations Leading Renewables Investment
By Ed King Investment in renewable energy projects in developing countries increased in 2012, despite a small global decline in back for wind and solar projects, the UN Environment Programme (UNEP) has revealed. Today it released two reports on the state of the renewable sector, the REN21′s Renewables Global Status Report (GSR) and Global Trends in Renewable Energy Investment 2013. They confirmed overall investment in renewables was $244 billion, a 12% drop on 2011, which the studies attribute to policy uncertainty in industrialised countries. Total power capacity increased by 8.5%, while the deployment of wind and solar installations broke new records, despite falls in overall funding. But while the US and Germany experienced significant dips in investment, there were sharp increases in China, South Africa, Mexico, Kenya and the Middle East. Installed wind capacity hit a new record of 48.4GW, up from 42.1GW in 2011, although investment fell 10% China consolidated its position as the world’s leading renewables market, with solar investment largely responsible for a 22% lead to $67 billion of investment. Small-scale solar in Japan also drove an astonishing 73% increase in investment, worth $16 billion. Despite the ongoing financial crisis, both reports highlight the strong position of the clean energy sector, which has seen $1.3 trillion injected since 2006, and now employs 5.7 million around the world. “This should be a source of inspiration for governments, cities, companies and citizens everywhere to raise their ambition towards climate action,” said UN Secretary General Ban Ki Moon. “A global climate agreement by 2015 would provide dramatic spur in the direction we need to travel.” UN climate chief Christiana Figueres, who has endured a difficult second week of international negitiations in Bonn, said the figures provide a welcome boost. “Driven in part by the UNFCCC process and various provisions and mechanisms of the Kyoto Protocol, the increasing deployment of wind, solar, geothermal and other clean energy power sources serve as a powerful antidote to those who claim that a transition to a low-carbon, resource-efficient future is unobtainable,” she said. Critically, costs of renewables continue to fall. Solar PV systems are down 30-40% on 2011 prices, while onshore turbines have fallen “by a few percentage points”. “It is encouraging that renewable energy investment has exceeded $200 billion for the third successive year, that emerging economies are playing a larger and larger part, and that the cost-competitiveness of solar and wind power is improving all the time,” said Michael Liebreich, Chief Executive, Bloomberg New Energy Finance. “What remains daunting is that the world has hardly scratched the surface – CO2 emissions are still on a firm upward trend and there was still nearly $150 billion of net investment in new fossil-fuel generating assets in 2012.” Continue reading
Greenergy To Tap Chinese Biomass Sector With Acquisition, 15 New Plants
Published 24 May 2013 Renewable energy company Greenergy Holdings is outlining extensive expansion plans by launching a line of biomass facilities in China by the third quarter of 2013. The company is keen to boost its capacity by developing 15 biomass plants in Heilongjiang province. Confirming the expansion plans, Greenergy president and CEO Antonio Tiu told the Inquirer that the company’s first project planned in China would have a capacity of 4MW. The company is gearing up to acquire a majority stake in Zhongshe Renewable Energy that owns four biomass facilities, each having 1MW capacity, added Tiu. “We recently signed the term sheet and are now conducting due diligence,” revealed Tiu, suggesting that the deal would close by the third quarter. Upon closing this acquisition deal, the company is planning to take up development of biomass plants in collaboration with the Heilongjiang Beidahuang Seed Group. Beidahuang will provide rice hull as feedstock to the plants from its farming business, as a part of partnership. Continue reading
Ways Of Gaining Exposure To Renewable Energy
Biofuel projects are currently in a very strong position. By Jonathan Turney | Published May 13, 2013 The rapidly developing biofuels industry has helped to put renewable energy on the map, with mandated blending targets indicating that the sector is ripe for further growth. Currently, just 6bn litres (or 4.75 per cent) of European transport fuel comes from renewable sources but as this figure needs to rise to 18.5bn litres by 2020, the renewable transport fuel market is set to triple in just seven years. Sustainable biofuel projects are currently in a very strong position. These schemes use technology with known commercial results and operate within a supportive regulatory environment – as demonstrated by the now binding UK Renewable Transport Fuel Obligation. Furthermore the UK is ideally suited to domestic biofuel production, with a large transport fleet, a surplus of low-grade feedstock and an existing petrochemical infrastructure. The renewable energy sector has undergone huge leaps in technology and development in the past few years and there are a range of projects offering attractive investment propositions with market-wide appeal. Many opportunities in the renewable energy sector are supported by government incentives to encourage investment. As a result, these tax efficiencies can be used to enhance returns or offer downside risk protection. Biofuel projects are particularly attractive as they usually have large capital expenditure requirements that generate in-year capital allowance relief that can be used in mitigating tax liabilities. These schemes may also contain expenditure on energy-saving plant and machinery, attracting enhanced capital allowances that generate 100 per cent first-year allowances. Such projects tend to be sited in regeneration areas or ‘enterprise zones’, which may also attract Business Premises Renovation Allowance relief on renovation costs. But project finance can be difficult to secure in the current climate. An alternative source of finance, which is starting to attract interest in the renewable energy sector, is ‘retail debt’. Products often referred to as ‘mini-bonds’ with a fixed term and return have been borne out of a clear demand from retail investors. The best-known example is energy firm Ecotricity, which raised £20m in two tranches – offering a four-year term of 6-7 per cent interest with a minimum investment of £500,000. While other investments look towards peer-to-peer lending, doubts surround the regulation and default-rate risks associated with this type of finance. With retail debt – a proven source for raising project finance in the renewable sector – this type of investment can bypass many of the issues faced and secure the necessary funding. Jonathan Turney is an associate director at Future Capital Partners Continue reading
