An analysis of future trends in the North American renewable energy market shows a significant increase in the volume and value of its contribution. The report, by Frost & Sullivan, covers the period 1996 to 2006.
In 1999, the revenue within the renewable market surged by more than three hundred per cent, largely driven by the growth of wind generation capacity, although this figure is not expected to be maintained. The growth of installed capacity for renewables over the same period stood at 3.7 per cent but revenue grew from $204 million in 1998 to $843 million.
According to the report, key drivers of market growth include the implementation of renewable portfolio standards, growing consumer demand, production credits and tax incentives and the influence of the Kyoto Protocol. However, the report also suggests that a number of factors may restrict growth of the renewables market including low fossil fuel costs, especially in comparison with some renewable technologies, stricter financing terms for renewable energy projects and the difficulty of storing energy from renewables, when available.
The report, based on the installed cost per megawatt of capacity, focused on wind, solar, biogas, geothermal and small hydro.
For more information contact Rolf Gatlin at rolf_gatlin@frost.com
