Thursday, March 31, 2005

Clean Energy Trends 2005

Joel Makower and the folks over at Clean Edge recently released their annual Clean Energy Trends report for 2005. The report provides 10-year projections for the major clean energy markets, and reviews factors that are influencing clean energy markets and venture capital investments.

Among other things, the report predicts that the three major clean energy markets - solar PV, wind, and fuel cells - will expand into a $100B industry over the next decade. In particular, Clean Edge research suggests that solar PV (modules, system components, and installation) will grow from $7.2 billion in 2004 (compared to $4.7 billion in 2003) to $39.2 billion by 2014; wind power installations will expand from $8 billion in 2004 (about the same as 2003) to $48.1 billion in 2014; and fuel cells and distributed hydrogen will grow from $900 million (primarily for research contracts and demonstration and test units) to $15.1 billion.

The report's authors also identify five "trends to watch" in the clean energy markets, including:
  1. an explosive growth in the biomass fuels industry;
  2. a boom in the energy efficiency industry as energy prices continue to increase;
  3. an increase in the use of concentrated solar power (CSP) as a source of large-scale power production;
  4. the emergence of hydrogen infrastructure; and
  5. an increased interest in green building design, spurred on by LEED (Leadership in Energy and Environmental Design) standards.
Check out the full Clean Energy Trends 2005 report for more.