Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Short-term Stock Market Trend Analysis - 6th Mar 21
Intel Rocket Lake EXPLODE on Launch - 11th Gen CPU's RUN VERY HOT Bad Cinebench R20 Scores - 6th Mar 21
US & UK Head for Post Coronavirus Pandemic Lockdown Inflationary Economic BOOM - 6th Mar 21
FED Balance Sheet Current State - 5th Mar 21
The Global Vaccine Race Against Time and Variants - 5th Mar 21
US Treasury Yields Rally May Trigger A Crazy Ivan Event (Again) In Stock Market - 5th Mar 21
After Gold’s Slide, What Happens to Miners? - 5th Mar 21
Racism Pandemic Why UK Black and Asians NOT Getting Vaccinated - NHS Covid-19 BAME - 5th Mar 21
Get Ready for Inflation Mega-trend to Surge 2021 - 4th Mar 21
Stocks, Gold – Rebound or Dead Cat Bounce? - 4th Mar 21
The Top Technologies That Are Transforming the Casino Industry - 4th Mar 21
How to Get RICH Crypto Mining Bitcoin, Ethereum With NiceHash - 4th Mar 21
Coronavirus Pandemic Vaccines Indicator Current State - 3rd Mar 21
AI Tech Stocks Investing 2021 Buy Ratings, Levels and Valuations Explained - 3rd Mar 21
Stock Market Bull Trend in Jeopardy - 3rd Mar 21
New Global Reserve Currency? - 3rd Mar 21
Gold To Monetary Base Ratio Says No Hyperinflation - 3rd Mar 21
US Fed Grilled about Its Unsound Currency, Digital Currency Schemes - 3rd Mar 21
The Case Against Inflation - 3rd Mar 21
How to Start Crypto Mining Bitcoins, Ethereum with Your Desktop PC, Laptop with NiceHash - 3rd Mar 21
AI Tech Stocks Investing Portfolio Buying Levels and Valuations 2021 Explained - 2nd Mar 21
There’s A “Chip” Shortage: And TSMC Holds All The Cards - 2nd Mar 21
Why now might be a good time to buy gold and gold juniors - 2nd Mar 21
Silver Is Close To Something Big - 2nd Mar 21
Bitcoin: Let's Put 2 Heart-Pounding Price Drops into Perspective - 2nd Mar 21
Gold Stocks Spring Rally 2021 - 2nd Mar 21
US Housing Market Trend Forecast 2021 - 2nd Mar 21
Covid-19 Vaccinations US House Prices Trend Indicator 2021 - 2nd Mar 21
How blockchain technology will change the online casino - 2nd Mar 21
How Much PC RAM Memory is Good in 2021, 16gb, 32gb or 64gb? - 2nd Mar 21
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Why Renewable Energy Is Attracting the Smart Money

Companies / Renewable Energy Jan 18, 2015 - 09:28 AM GMT

By: Money_Morning

Companies

Dr. Kent Moors writes: While everyone's been fixated on oil, renewable energy has been gathering some serious steam.

Led by solar power, worldwide capital investment in "clean" energy surged by more than 16% last year.

In fact, spending on renewable energy was so strong in 2014, some have begun to label the recent rush into renewables as a "turning point" in the energy balance.


According to a report last week from Bloomberg New Energy Finance (BNEF), the total invested in renewable power jumped to $310 billion, just $17 billion shy of the all-time record in 2011.

But here's the real kicker…

Since renewable energy is now much cheaper to generate, last year's investment brought in almost double the clean electricity capacity versus what was realized only four years earlier.

That's undoubtedly a bullish sign…

A Brewing Solar Power Boom

Of course, these figures don't tell the whole story about renewables.

For one thing, the global renewable picture is very uneven. While new projects have moved forward in the Middle East and certain parts of Asia, the biggest move has been largely spearheaded by solar power investment in the United States and China.

Meanwhile, had it not been for some large-scale offshore wind farms in Europe, investment there would have been in negative territory. And in Australia, where there had been signs of a major initiative, lack of government support has resulted in an absolute contraction in support for renewables.

But as the British newspaper The Guardian noted on Friday, BNEF Chairman Michael Liebreich said, "The investment bounce back in 2014 exceeded our expectations," adding, "Solar was the biggest single contributor, thanks to the huge improvements in its cost-competitiveness over the last five years."

In all, solar investment rose by 25%, while wind power rose 11% to account for a third of all investment in 2014. Meanwhile, energy efficiency and electric vehicles rose 10%, including the $2.3 billion raised by Tesla Motors Inc. (Nasdaq: TSLA). On the downside, biofuels investments fell 7% and biomass and incinerator projects attracted 10% less financing.

However, one thing is perfectly clear:

China is emerging as a dominant player in renewable energy. For the year, China accounted for $90 billion in renewable spending, a year-on-year increase of 32%. The United States ranked second with $52 billion, up 8%, while Japan totaled $41 billion, an increase of 12%.

Of course, totaling national performances is sometimes misleading when it comes to assessing the genuine impact on developing energy markets.

There is no question, however, that the renewable market in general – and most certainly solar in particular – is gravitating toward Asia.

In addition to leading the table on total investment, China is also the center of next-generation solar technology and is beginning to occupy a similar position in wind power.

Given the dramatic move in energy demand in Asia through 2035, the new balance emerging among different energy sources will be progressively determined by the needs and developments there.

Meanwhile, The Guardian notes that the mega-solar and onshore wind projects financed in 2014 included the $1 billion Setouchi solar project in Japan, the $1 billion Solar One plant in South Africa, and the $860 million Lake Turkana wind project in Kenya.

Additionally, there were also seven mega offshore wind projects, including the $2.6 billion Dudgeon project in U.K. waters and the $3.8 billion Gemini series off the Netherlands, which is the most valuable renewable energy investment ever made excluding hydroelectric. Rooftop solar also had a strong year, jumping 34% to $74 billion.

All of this occurred in the face of falling oil prices, which had little effect on clean energy investments. According to Liebreich, "2014 was too early to see any noticeable effect on investment, and anyway the impact of cheaper crude will be felt much more in road transport than in electricity generation."

Renewable Energy Will Power the Economic Recovery

On the other hand, as I have noted on several occasions, the same thing is not true for the average returns of renewable energy stocks. The collapse in oil has hurt energy sector share prices virtually all across the board.

But as Ed Davey, the U.K.'s energy and climate change secretary, told The Guardian: "Renewables are proving they can be cost competitive, which is why they are playing a key role in powering the economic recovery. We are transforming our electricity market [and] that's why the U.K. is a leading destination for renewables and is number one for offshore wind. Since 2010, renewable electricity generation has almost trebled and renewable electricity investment has more than doubled."

In agreement, Richard Black, director of the Energy and Climate Intelligence Unit, states, "The figures show that renewable energy is increasingly cost-competitive, with solar in particular rapidly approaching parity with fossil-fuel generation. They suggest also that investors are growing weary of increasingly volatile fossil fuel markets," while "some developing countries have increased low-carbon investment hugely – a staggering 88% in the case of Brazil."

The concern going forward will be how the average investor can make money on the confluence of major project investments and the ongoing uneasiness about individual company strengths.

I will be discussing these issues again in the New Year. And as soon as the trends stabilize among the renewable energy providers on my tracking lists, I'll have the foundation of an operational strategy. So stay tuned.

It's shaping up to be a profitable year for this portion of the sector.

Source : http://moneymorning.com/2015/01/15/why-renewable-energy-is-attracting-the-smart-money/

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules