Renewables – Global status report 2006 update

Jan 2006

REN21 is a global policy network in which ideas are shared and action is encouraged to promote renewable energy. It provides a forum for leadership and exchange in international policy processes. It bolsters appropriate policies that increase the wise use of renewable energies in developing and industrialized economies.
In this report, record investment in new renewable energy capacity occurred in 2005 ($38 billion, up from $30 billion in 2004) have been emphasized. Germany and China were the investment leaders, with about $7 billion each, followed by the United States, Spain, Japan, and India. Wind power registered the second highest added capacity, almost as much as large hydropower, with existing capacity growing 24 percent to reach 59 gigawatts (GW). Biomass power production saw 50–100 percent increases in annual production in several countries in 2004. High growth rates also occurred in biodiesel (85 percent increase in annual production) and grid-connected solar PV (55 percent increase in existing capacity).
In ethanol, U.S. production caught up to Brazil, long the world’s leading producer, and three new European Union (EU) countries became producers. In biodiesel, nine new EU countries became producers.
The renewables industry captured investors attention, as the number of renewable energy companies or divisions with market valuations greater than $40 million increased from 60 to 85. The estimated total valuation of companies in this category was $50 billion, double the 2004 estimate, as several high-profile initial public offerings took place. The solar PV industry invested record amounts in new plant and equipment (about $6 billion), as did the biofuels industry (more than $1 billion). The wind industry continued international production expansion, including in Australia and China, where Vestas, Gamesa, Suzlon, Acciona, and GE Energy were all establishing manufacturing facilities.
Policies were extended, revised, and added. Several EU countries revised or supplemented feed-in policies. The United States extended its production tax credit through 2007. A number of countries dramatically stepped up targets for biofuels and at least 10 states/provinces and six countries added blending mandates. Several EU countries enacted new biofuels tax exemptions.

By: Renewable Energy Policy Network for the 21st Century (REN21)

download this document:   703 kb