Renewable energy on the rise

According to the International Energy Agency (IEA) there is more investment in renewables than was expected despite the recession. The recent Bloomberg New Energy Finance report, a worldwide study of investment in the development of clean and renewable energy, documented that, compared to the same period last year, investment in green energy rose by almost a third in the first quarter of 2010.

Last year the IEA set a target at their World Energy Outlook that aimed for carbon-dioxide free power generation to add up to 60 per cent of electricity by 2030. Currently the share is 33 per cent, IEA Executive Director Nobuo Tanaka said, "our projection for investment in renewables may not necessarily be as pessimistic as initially thought." The Chief Executive of Bloomberg New Energy Finance, Michael Liebreich, supports this statement; "we stick to our forecast that 2010 will see record overall new investment in clean energy."

Many countries are aiming to increase their use of sustainable energy. China is one of these countries. The Chinese Government recently changed its energy law, requiring power utilities to increase their use of renewable energy. Its investment programme has allocated $230 billion towards green energy; China has much economic incentive for turning to sustainable energy.

India is also aiming to become greener when it comes to energy consumption. The Indian Government is developing a Renewable Energy Certificate Scheme, which aims to encourage investment in cleaner energy. India's power regulator claims that, "this concept seeks to address the mismatch between availability of renewable energy sources and the requirement of the obligated entities to meet their renewable purchase obligation." Internationally, New Energy Finance believes that around $200 billion will be invested in renewable energy.

There are mixed opinions over whether the move to green energy is happening naturally or whether it needs to be enforced. Tanaka however thinks that we have seen a historical transition towards the sustainable sector stating, "we are seeing real changes and a historical transition in low carbon technology." Clearly countries are beginning to realise that the way forward lies in renewable energy in its many forms; wind power, hydropower etc. This conversion to sustainable, clean energy will benefit both the economy and the environment of nations worldwide.

 

Author: Rachael Bristow | Climate Action

Image: Tuftronic10000 | Flickr