Renewable Energy Investment Up 25%
OSLO – Investment in renewable energies such as wind power and biofuels leapt to a record US$100 billion in 2006 and worries about global warming are likely to sustain the boom, a UN report said on Wednesday.
The flood of cash meant that clean energies had shaken off a fringe image compared with fossil fuels and seemed robust enough to survive any fall in high oil prices, according to a 46-page study by the UN Environment Programme (UNEP).
"Renewable energies are no longer subject to the vagaries of rising and falling oil prices — they are becoming generating systems of choice for increasing numbers of power companies, communities and countries," said Achim Steiner, head of UNEP.
UNEP said investment capital flowing into renewable energy and efficiency technologies rose 25 percent in 2006 to US$100 billion from US$80 billion in 2005. That total was likely to leap to around US$120 billion in 2007.
Growth "although still volatile…is showing no sign of abating", the report said.
Steiner said the report showed industries in rich countries were no longer dominant in renewable energies such as wind, solar, biofuels, hydro, tidal or geothermal power.
Almost 10 percent of the 2006 investments were in China, he said. India was the biggest net buyer of companies abroad in 2006, led by takeovers by Indian wind turbine maker Suzlon which is planning a European listing.
The report said worries about climate change, high oil prices averaging more than US$60 a barrel last year, efforts to break dependence on energy imports and government incentives to shift away from fossil fuels had spurred investment.
Separately, a British report on biofuels says all types of waste products, including plastic bags, can be used to make biodiesel fuel.