Renewable Energy

Investment in clean energy – defined as investment in renewable energy and energy efficiency technology, but excluding nuclear power and large hydro – increased from US$ 33 billion to US$ 148 billion between 2004 and 2007, and constitutes approximately 10% of global energy infrastructure spend. In electricity generation, the rapid expansion of sustainable energy has been even more striking, with 42GW of power generation capacity added in 2007, just under a quarter of the total 190GW of power generation capacity added worldwide.

Renewable energy sources, such as biofuels, solar, tidal, and wind power are expected to grow from a value of $104 billion in 2008, to approx. $467 billion in 2017.

The investments involved in a shift to a low-carbon energy system are daunting. The Stern Review talks of a cost of 1% of global GDP to limit greenhouse gases to a concentration of 550ppm CO2e by 2050, equivalent to around US$500 billion a year. The International Energy Agency’s World Energy Outlook (WEO) 2008 estimates around US$550 billion needs to be invested in renewable energy and energy efficiency alone each year between now and 2030 if we are to limit concentrations to 450ppm CO2e, while New Energy Finance’s Global Futures analysis points to US$515 billion per year over an extended period.

The threat of global warming combined with the federal incentives is promising rapid growth in markets consuming clean technologies of all kinds, from solar and new materials to software for sustainability programs.

SwitchingGears brings investors together with technology startups, project developers, and government entities to make renewable energy companies more successful.