Renewable Energy Investment up 60% Per Year in 2007, On Same Pace for 2008

Windmills Along the M6
Windmills Along the M6, photo by Bob Cox Photography

Saw this news item about the growth of green energy investment last week, which tends to correlate with the idea that the growth rate of renewable energy is not linear, but geometric (that is, doubling every n years, like Moore’s Law).

The UN Environment Programme (UNEP) reports that investments in renewable energy in 2007, at $148 billion, were 60 percent above 2006, with 2008 growth continuing. Achim Steiner, head of UNEP, said:

“The clean energy industry is maturing and its backers remain bullish. These findings should empower governments both North and South to reach a deep and meaningful new agreement by the crucial climate convention meeting in Copenhagen in late 2009. It is increasingly obvious to the public and investors alike that the transition to a low-carbon society is both a global imperative and an inevitability. This is attracting an enormous inflow of capital, talent and technology. But it is only inevitable if creative market mechanisms and public policy continue to evolve to liberate rather than frustrate this clean energy dawn. What is unfolding is nothing less than a fundamental transformation of the world’s energy infrastructure.”

There was similar news recently about the growth of both solar energy generation and wind energy generation.

Thanks to blow-hard winds, the United States has just become the world’s largest generator of wind energy.

Germany previously held this distinction, though since the United States has about 26 times more land than Germany, the milestone isn’t a huge surprise. Nonetheless, we weren’t expected to reach this point until late 2009. [Emphasis added – npd]

The key point is that we’re ahead of schedule on renewables, because the schedule was based on linear growth projections. The big question that remains is not whether the growth is exponential, but what’s the time period for doubling? Is it two years? Three years? One year? What do you think?

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Efficiency profitable for energy-independent Denmark

Thomas Friedman’s OpEd on Sunday describes how Denmark has achieved energy independence, and illustrates the numerous benefits for the country, including a very low unemployment rate and a large new export market.

When the 1973 oil shock hit, Denmark got 99 percent of its energy from the Middle East. Now they get zero. The country has combined massive energy efficiency programs, such as using waste heat from power plants to heat homes (known as “cogeneration”), with alternative energy sources like windmills (20% of their energy comes from the wind now), effective use of their own petroleum resources in the North Sea, and incentives for lowering energy use via high taxes on gasoline.

As a result, Danes enjoy one of the highest standards of living in the world, an extremely low unemployment rate, and a healthy export sector in alternative energy products.

Because it was smart taxes and incentives that spurred Danish energy companies to innovate, Ditlev Engel, the president of Vestas — Denmark’s and the world’s biggest wind turbine company — told me that he simply can’t understand how the U.S. Congress could have just failed to extend the production tax credits for wind development in America.

Engel suggests why this might concern us here in the United States.

“We’ve had 35 new competitors coming out of China in the last 18 months, and not one out of the U.S.”

If Denmark has been able to achieve 100% energy independence, at net benefit to their society economically, what does that say about America’s chances? Denmark has some advantages – it’s much smaller than the U.S., it has new oilfields in the North Sea – but we have advantages as well – our Southwest is much better for solar than anywhere in Denmark, we have whole states available for wind power, we have comparatively high rates of energy inefficiency that represent massive “negawatts.” Amory Lovins of Rocky Mountain Institute has outlined a set of steps for getting the U.S. off oil by 2025 – Winning The Oil End Game – that provides one possible, well-researched scenario for a profitable transition.

In the 35 years since the ’73 oil shock, Denmark has accomplished something remarkable. Now we in the U.S. need to set ourselves a similar goal. Using new technologies, such as the fuel cell breakthroughs I mentioned last week (here and here), we should be able to get there a lot faster than 35 years.