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Clean Energy Trends 2014: New Solar Energy Capacity Exceeds Wind For First Time

| Wednesday March 26th, 2014 | 12 Comments

CleanEnergyTrendsLogoThe landscape of the global renewable energy market continues to shift with changes in economic and social conditions and policies. While some renewable energy sectors – notably, solar photovoltaic (PV) deployment – experienced “dazzling growth, success and rising stock prices,” others saw a drop in deployments, as well as challenges on the policy and finance fronts, according to a global clean energy market report from Clean Edge released March 26.

Last year marked a turning point for solar PV, according to Clean Edge’s, Clean Energy Trends 2014 report, as newly installed solar PV generating capacity exceeded that of wind power for the first time since the market research company began tracking global markets in 2000. Newly installed solar PV generating capacity totaled 36.5 gigawatts (GW) while that for wind totaled 35.5 GW, according to Clean Edge’s count.

A crossover for solar PV

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Fueling solar PV capacity growth, new installations hit record levels in China, Japan and the U.S. in 2013. That combined with a decline in new wind power capacity led to “this unprecedented crossover,” Clean Edge explained in a press release.

The global solar PV market grew 15 percent in value in 2013, with modest growth in biofuels. Combined, growth in the two sectors wasn’t enough to offset a drop in the value of the wind power, however.

Totaling $247.6 billion, the combined value of the global renewable energy market in 2013 fell slightly from $248.7 billion in 2012, according to Clean Edge’s latest report.

Energy crossroad dead ahead

Beset by strategic geopolitical problems, rising social unrest and fragile economic recovery, the social, economic and political, as well as ecological, stakes revolving around energy are extremely high. Energy policy, investment and economic decisions made today will chart a course and lock in greenhouse gas emissions for decades to come — setting us on a course for more in the way of extreme weather events and associated damages and costs, according to the World Meteorological Organization’s (WMO) 2013 Annual Statement on the Status of the Climate.

Clean Edge’s co-founder and managing director, Ron Pernick, reinforces the point:

“The adoption of clean energy is set against a bigger-picture context that finds many of the world’s largest energy-using nations struggling with critical choices for their energy future. Climate disruptions, smog alerts, planned and unplanned nuclear power shutdowns, and resource scarcity are all driving significant change, accelerating the double-digit adoption growth of solar PV, hybrid and electric vehicles, green buildings, and other clean-tech solutions.”

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Among the Clean Energy Trends 2014 report’s key takeaways:

  • Solar photovoltaics (including modules, system components and installation) grew to $91.3 billion from $79.7 billion in 2012, with a record 36.5 GW installed globally. In contrast to 2011 and 2012, when PV panel costs plummeted more than 20 percent in both years, prices held nearly steady last year — dropping slightly to $2.50 per watt installed.
  • Wind power (new installation capital costs) fell to $58.5 billion from $73.8 billion in 2012. The industry added 35.5 GW of new capacity in 2013, well below the previous year’s record 44.7 GW and its weakest performance since 2008.
  • Biofuels (global production and wholesale pricing of ethanol and biodiesel) rose slightly, from $95.2 billion in 2012 to $97.8 billion last year. Global biofuels production remained constant at 31.4 billion gallons, with average prices increasing slightly.
  • Together, Clean Edge projects that these three sectors will expand from $247.6 billion in 2013 to $397.8 billion within a decade.
  • Venture capital investments in U.S.-based clean-tech companies totaled $4.4 billion in 2013, falling 25 percent from $5.8 billion in 2012, according to data provided by Cleantech Group.
  • Picking up some of the VC financing slack is the continued rise of large corporate and project finance deals. Google’s $3.2 billion acquisition of smart thermostat maker Nest in early 2014 is the most prominent example. But other recent large deals include Goldman Sachs’ $500 million fund to finance SolarCity PV installations and Wells Fargo’s pledge to invest $100 million in tax equity financing in SunEdison projects.
  • For the first time, Clean Edge expanded the scope of its global market size research to include green buildings and electric and hybrid vehicles. Since 2000, these sectors have experienced compound annual growth rates of 68.9 percent and 38 percent respectively.

Clean Edge also highlights five key trends that will shape clean energy markets around the world in coming years:

  1. Enlightened utilities begin to embrace distributed energy assets
  2. Cities lead climate charge by focusing on regional carbon reduction
  3. Net zero energy buildings gain ground
  4. Internet-enabled clean-tech startups define a new sector
  5. Vertical farming sprouts in cities around the world

All in-text images courtesy of Clean Edge, “Clean Energy Trends 2014″

Featured Image: Flickr/U.S. Army Environmental Command


▼▼▼      12 Comments     ▼▼▼

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  • Stevebry56

    Clean Energy has been underperforming the market, but its stock promises large upside which makes it a good buy for now on dips.

    • mikewatson021

      Clean Energy reported revenues of $334.01 million in fiscal year 2012, its fiscal year end on December 31.

      • Stevebry56

        Clean Energy revenues had increased at a five-year compound annual growth rate of 23.2% through the years. And the analysts expect revenues to touch $600 million by the end of fiscal year 2015.

        • mikewatson021

          Despite the Clean Energy’s leadership in the market for natural gas fuels, it has consistently reported financial losses since its inception.

        • Stevebry56

          For its latest reported fiscal year 2012, the Clean Energy reported a loss of $101.26 million, for per share losses of nearly $1.16.

        • mikewatson021

          $34.65 million, or $0.37 per share, in the first nine months of fiscal year 2013.

        • Stevebry56

          Although it seems that Clean Energy is gradually moving to profitability, but the analysts do not expect that Clean Energy will
          start making profit before 2016 http://goo.gl/UK7UXl

        • mikewatson021

          The Product business segment of Clean Energyreported revenues of $293.8 million for fiscal year 2012, accounting for 88% of Clean Energy’s consolidated topline.

        • Stevebry56

          LNG sales accounted for 72% of all revenues from natural gas fuels. This business segment of Clean Energy revenues were up 15% year-over-year to $237.24 million in the first nine months of fiscal year 2013.

        • mikewatson021

          Clean Energy issued debt of $294 million in the first three quarters of fiscal year 2013, taking its total liabilities to $594
          million as of the end of third quarter fiscal year 2013. The company is expected to continue issuing more debt in fiscal year 2014.

  • Clem Roberts

    Clean Green Energy LLC to merge with MKBY. Wind, solar, geothermal, biomass, Cree LED lighting retrofits. Power is generated at the facility and excess power generated is sold back into the grid. Meaning the power company pays you. This is the 2014 merger that will be making waves.

  • earlrichards

    To avoid the Big Oil/Texas gasoline price rip-off, plug your Tesla S electric car into your household, solar array.