According to Credit Suisse (CS), declining oil reserves coupled with concerns about global warming have many countries inspired to seek renewable energy options. Interest in wind and solar in particular are on the rise, experiencing double-digit growth. Analysts predict wind and solar to contribute more than 25% to renewable energy by 2030.
CS has recommended diversifying stock investments across all alternative energy themes and/or in an alternative energy index. “It is an exciting time for alternative energy, with market dislocation and heavy competition for investment likely,” says Jeffrey Culpepper, CS investment banking vice-chairperson for the Europe, Middle East and Africa region.
Meanwhile, Dr Sultan Ahmed Al Jaber, CEO of Masdar, a multi-faceted future energy initiative wholly owned by the government of Abu Dhabi through the Mubadala Development company, said that with the world focused on the current economic disruption, future energy
challenges could have “slipped” off the international agenda.
Speaking at the World Future Energy Summit, held in the city of Abu Dhabi last week, Al Jaber, said that the global economic downturn had had an impact on every sector of the global economy, including renewable energy, and that the lack of available capital and lower oil prices had created some doubts about the renewable energy sector, and whether it could maintain its relevance and attract investment.
But he added: “Renewable energy continues to make absolute sense, even in these difficult times, and for those who are capable of looking beyond the economic downturn. There are many signs that point to renewable energy sector’s undeniable monetary and long-term viability, including national policy commitments and significant investment taking place globally.”
Such investments include US President Barack Obama’s pledge to invest $150-billion in clean energy over the next ten years, the European Union’s undertaking to reduce its carbon footprint by 20% by 2020, and the Australian government’s establishment of a multibillion dollar renewable energy investment fund.