Worldwide revenues from the solar photovoltaic, wind and biofuels industries jumped 53% in 2008 to $116 billion and is on track to grow to $325 billion by 2018, according to a report released Tuesday by West Coast market research firm Clean Edge.
Last year’s boom, however, is unlikely to be repeated in 2009, given the global financial crisis. Signs of the slowdown were apparent last year as new global investment in green energy grew by a paltry 4.7% to $155 billion, compared to a 60% rise between 2006 and 2007. In the United States, however, venture capital investments in green tech grew 22% last year to $3.3 billion, representing 12% of all VC investments, according to figures compiled by research firm New Energy Finance.
“2009 is a year to get through,” said report author Ron Pernick during a conference call.
Of course, growth projections for renewable energy are inherently speculative. Green energy investment is strongly dependent on government policy and what the Obama administration gives today in the form of billions in subsidies and incentives a successor can take away. And then there are calamities like the extent of the meltdown of the global economy that few foresaw even a year ago.
The wind industry accounted for a third of renewable energy revenues in 2008, becoming a $50 billion business. Clean Edge projects that employment in the wind and solar industries will grow from a combined 600,000 jobs in 2008 to 2.7 million by 2018.
“As the market transitions to low-carbon fuel and electricity sources, conservation and efficiency efforts, and the deployment of a smart, 21st century grid, we believe clean energy offers one of the greatest opportunities for both local and global economies to compete and thrive,” wrote Pernick and co-authors Joel Makower and Clint Wilder.
They identified as growth areas smart grid technologies, energy storage for wind and solar farms, the Eastern Eureopean market, power grid infrastructure and micro power grids that provide electricity to self-contained facilities or areas.