Global Clean Energy Markets Exceed $220 Billion by 2016
Global clean-energy markets are poised to quadruple in the next decade, growing from $55.4 billion in revenues in 2006 to more than $226.5 billion by 2016 for four benchmark technologies, according to the sixth annual Clean Energy Trends report. The report was released by clean-tech research and publishing firm Clean Edge, Inc.
![](/i/photos/news & events/CleanEnergyProjected07.gif)
As highlighted in the report, “Clean Energy Trends 2007,” a number of factors are contributing to this extensive growth, including an influx of venture capital (VC); a new level of commitment by politicians at regional, state, and federal levels; and significant corporate investments in clean-energy acquisitions and expansion initiatives.
![](/i/photos/news & events/VC-Investment.gif)
For the second year in a row, the global biofuels market was slightly larger than both solar and wind, reaching $20.5 billion in 2006 and projected to grow to more than $80 billion by 2016. Clean Edge projects solar photovoltaics (modules, system components, and installations) will grow from a $15.6 billion market in 2006 to $69.3 billion by 2016; wind power installations will expand from $17.9 billion in 2006 to $60.8 billion in 2016; and the markets for fuel cells and distributed hydrogen will grow from $1.4 billion in 2006 to $15.6 billion over the next decade.
![](/i/photos/news & events/VC_investmentsPercentofTotal.jpg)
“At $55 billion, the global market for biofuels, solar, wind, and fuel cells are now considerably larger than the global recorded music industry,” explains Clean Edge co-founder and principal Ron Pernick. “Within a decade we predict these clean-energy markets will exceed $220 billion and that the global annual production of biofuels will increase from around 13 billion gallons last year to 50 billion gallons, solar will jump from 2 GW of production to nearly 20 GW, and wind power will increase from 15 GW to 67 GW. ”
Clean Edge, in collaboration with Nth Power, a leading energy-tech VC firm, also released the firms’ annual energy-tech venture data. This year’s findings show that VC investments in energy-tech start- ups rose 262 percent to $2.4 billion in 2006. These investments, primarily in transportation and fuels, distributed energy, energy intelligence, and power reliability, eclipsed the previous high- water mark set in 2000 for energy-tech investing by more than $1 billion. The figures represent 9.4 percent of total US venture capital investments in 2006.
![](/i/photos/news & events/VCActivitybySector.jpg)
“Energy tech investing in the U.S. now represents nearly ten percent of the total venture activity,” explains Rodrigo Prudencio, partner, Nth Power. “With a growing number of investors actively seeking energy-tech deals, the capital to fund biofuel and solar expansion was readily available. 2007 will clearly be an indicator of whether the aggressive growth in energy-tech investment can be sustained.”
“Clean Energy Trends 2007” also names five key trends that are shaping the clean-energy landscape this year. They include:
![](/i/photos/news & events/CleanEnergyProjected07.gif)
As highlighted in the report, “Clean Energy Trends 2007,” a number of factors are contributing to this extensive growth, including an influx of venture capital (VC); a new level of commitment by politicians at regional, state, and federal levels; and significant corporate investments in clean-energy acquisitions and expansion initiatives.
![](/i/photos/news & events/VC-Investment.gif)
For the second year in a row, the global biofuels market was slightly larger than both solar and wind, reaching $20.5 billion in 2006 and projected to grow to more than $80 billion by 2016. Clean Edge projects solar photovoltaics (modules, system components, and installations) will grow from a $15.6 billion market in 2006 to $69.3 billion by 2016; wind power installations will expand from $17.9 billion in 2006 to $60.8 billion in 2016; and the markets for fuel cells and distributed hydrogen will grow from $1.4 billion in 2006 to $15.6 billion over the next decade.
![](/i/photos/news & events/VC_investmentsPercentofTotal.jpg)
“At $55 billion, the global market for biofuels, solar, wind, and fuel cells are now considerably larger than the global recorded music industry,” explains Clean Edge co-founder and principal Ron Pernick. “Within a decade we predict these clean-energy markets will exceed $220 billion and that the global annual production of biofuels will increase from around 13 billion gallons last year to 50 billion gallons, solar will jump from 2 GW of production to nearly 20 GW, and wind power will increase from 15 GW to 67 GW. ”
Clean Edge, in collaboration with Nth Power, a leading energy-tech VC firm, also released the firms’ annual energy-tech venture data. This year’s findings show that VC investments in energy-tech start- ups rose 262 percent to $2.4 billion in 2006. These investments, primarily in transportation and fuels, distributed energy, energy intelligence, and power reliability, eclipsed the previous high- water mark set in 2000 for energy-tech investing by more than $1 billion. The figures represent 9.4 percent of total US venture capital investments in 2006.
![](/i/photos/news & events/VCActivitybySector.jpg)
“Energy tech investing in the U.S. now represents nearly ten percent of the total venture activity,” explains Rodrigo Prudencio, partner, Nth Power. “With a growing number of investors actively seeking energy-tech deals, the capital to fund biofuel and solar expansion was readily available. 2007 will clearly be an indicator of whether the aggressive growth in energy-tech investment can be sustained.”
“Clean Energy Trends 2007” also names five key trends that are shaping the clean-energy landscape this year. They include:
- Carbon Finally Has a Price…and a Market
- Biorefineries Begin to Close the Loop
- Advanced Battery Makers Take Charge
- Wal-Mart Becomes a Clean-Energy Market Maker
- Utilities Get Enlightened
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