Release
Clean energy looks buoyant in July 2008
Abu Dhabi, United Arab Emirates, 13th July, 2008: Clean energy markets are looking lively with institutional funding being put forth by Governments and investor confidence being backed by regulatory directives over the last 12 months. According to a recent UNEP report study, ´Over $148 billion in new funding entered the sustainable energy sector globally last year, up 60% from 2006’.
With pressure building on most parts of the global economy, a balancing act has begun with cleaner energy and long-term investments, an act that brings the leading minds to the fore. Overall, there appears, a pertinent moment to look at some of the recent activity in the marketplace.
In Russia on July 1st, RAO UES (Unified Energy Systems of Russia), one of the giants of the Russian economy with a capitalization of $50 billion ceased to exist through liquidation. Until recently, RAO UES was one of the world’s largest power companies controlling 72% of Russian national power-plant generation and 96% of electric distribution through hydro and thermal production.
The renewable interest lies in the privatization of RAO USE subsidiary, Hydro OGK, with a free float of initially 21% (now 40% since July 1st), into a publicly traded company, RusHydro. RusHydro produces 22 GW of hydroelectric energy, second largest in the world.
Share at market debut this February traded at $0.08, it was trading at $0.07 on July 4th. However, Viacheslav Sinyugin, CEO of Hydro OGK, was reportedly sacked shortly before the RAO USE liquidation and the market awaits its first privatized steps.
The US Department of Energy, DOE, has confirmed $10 billion in loan guarantees for advanced technology development in efficiency, renewable energy and electrical transmission. Clean transport, construction, batteries, solar, wind, geothermal, tidal and biomass all qualify under the solicitation.
In addition, the loan guarantees up to $18.5 billion in loans for nuclear power facilities, and up to $2.5 billion for advanced front-end nuclear technology including uranium enrichment. A third solicitation is expected this summer for guarantees on $8 billion for advanced fossil energy projects.
US wind received large votes of confidence this year with Shell reportedly pulling out of other wind projects, to concentrate on the US market. Wind attracted more investment globally last year than any other non-fossil fuel based technology, including large hydro and nuclear power with a total global investment of $50.2 billion in 2007.
The EU 2020 energy directive has sought to offer European investment certainty by implementing a framework to govern energy supply, both its source and resource. An approximate 20% of electricity and ‘heating and cooling’ must come from alternative or renewables, with a further 10% required in transportation from ‘sustainable bio-fuels’ by 2020 in each member state.
The EU parliament recently approved new EU waste legislation on waste management, requiring 50% of all household waste and 70% of non-hazardous construction and demolition waste must be recycled by 2020. The EU had been expected to take a firm stance against waste stock-piling describing it as “not a viable solution” ; member states combined currently produce over two billion tonnes of waste a year.
The great bio-fuel debate is due for expansion as the 2020 directive requires bio-fuels to be regulated by ‘environmental sustainability’ standards, by land carbon calculators and a harmonized EU system of guarantees of origin. The United Nations appears to be split on the issue with the UN Special Rapporteur on the right to food, Jean Ziegler, calling bio-fuels “a crime against humanity” , this characterization of a ‘complex issue’ found regret and strong opposition in the UN’s Food and Agricultural Organization.
What remains to be seen is plenty- how the balancing act will play out and what market corrections this will lead to and who will the winners and losers be, both commercially and socio-economically. The World Future Energy Summit in Abu Dhabi, January 2009, will continue to play an important role in clean energy market awareness and the education of investors on the opportunities and obstacles in their way.
With a total of four ‘Global Future Energy Policy’ debates from January 19-21, WFES 09 will examine the big issues with speakers including Prof. Jacqueline McGlade, Executive Director of the European Environment Agency, Dr Hermann Scheer, President of EUROSOLAR and General Chairman of the World Council for Renewable Energy and Mr. Dan Arvizu, Director of the US National Renewable Energy Laboratory.
ABOUT THE WORLD FUTURE ENERGY
The World Future Energy Summit held its inaugural event on 21-23 January 2008 in
The first summit in January brought together 11,272 attendees from 77 countries, 213 exhibitors from 23 countries, over 80 speakers and 423 international and regional media.
Hosted by Masdar, WFES 08 took place at the Abu Dhabi National Exhibition Centre with Credit Suisse as the Principal Sponsor. The Platinum Sponsors were BP, Shell, Standard Chartered and Merrill Lynch and the Gold Sponsors were International Power, Total, Dolphin Energy and Occidental.
Please visit the official website for additional information, www.WorldFutureEnergySummit.com
ABOUT TURRET MIDDLE EAST
Turret
The company organizes some of the region’s biggest events including the internationally acclaimed World Future Energy Summit, winner of the AEO Best Launch Event this year and consumer shows such as the blossoming International Fine Art and Antiques Fairs and renowned Taste of Dubai food extravaganza, which Turret ME brought to the UAE.
With a new publishing department expanding rapidly into new markets, the Turret ME team is going from strength to strength. For more information go to www.turretme.com
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