Deloitte report indicates rocky road ahead for renewable energy sector
Singapore, 23 July 2013 — Global investment in the renewable energy sector is set to continue to decline in the short term from the 11 percent fall seen in 2012. This is according to the Deloitte Touche Tohmatsu Limited (DTTL) Alternative thinking 2013: Renewable energy under the microscope report.
The report identifies the important trends and opportunities in renewable energy for developers, investors and policy-makers and; points out where significant barriers to progress lie, and suggests strategies for dealing with them. Despite the recent decline in investment, the study finds that renewables are becoming less alternative and increasingly mainstream, with 118 countries now having renewable energy targets in place and the wave of public demand for clean energy increasing.
Jane Allen, DTTL Global Leader, Renewable Energy comments, “Global investment into the renewable energy sector is likely to remain subdued in the near time. Yet over the long term, the sector will be more attractive, as technology improves and costs decline. In the meantime, investors need to choose their spots wisely, because it’s not going to get any easier anytime soon.”
The analysis outlines five crucial areas where planning and decision-making in the near term will be key, including:
“It is important for utilities, investors, developers, and governments to understand the evolving renewable energy landscape so that they have the long-term context for the short-term decisions they must make,” said Allen. “Subsidies and further technological refinement and innovation are going to continue to be needed in the short- to medium-term. Companies must take advantage of the subsidies where possible, but must also develop a strategy that takes into account their eventual phase out. The current low cost of natural gas in North America and the expectation of this dynamic spreading globally will also suppress investment in renewables for the short-term, but this is likely to ease as gas prices level out with rising demand.”
To access the full report please visit: www.deloitte.com/alternativethinking
i REN21. 2012. Renewables 2012 Global Status Report. (Paris: REN21 Secretariat).