Best of the Week
Most Popular
1. Crude Oil and Water: How Climate Change is Threatening our Two Most Precious Commodities - Richard_Mills
2.The Potential $54 Trillion Cost Of The Fed's Planned Interest Rate Increases - Dan_Amerman
3.Best Cash ISA Savings for Rising UK Interest Rates and High Inflation - March 2018 - Nadeem_Walayat
4.Fed Interest Hikes, US Dollar, and Gold - Zeal_LLC
5.What Happens Next after February’s Stock Market Selloff - Troy_Bombardia
6.The 'Beast from the East' UK Extreme Snow Weather - Sheffield Day 2 - N_Walayat
7.Currencies Will Be ‘Flushed Down the Toilet’ Triggering a ‘Mad Rush into Gold’ - MoneyMetals
8.Significant Decline In Stocks On The Cards! -Enda_Glynn
9.Land Rover Discovery Sport Extreme Driving "Beast from the East" Snow Weather Test - N_Walayat
10.SILVER Large Specualtors Net Short Position 15 Year Anniversary - Clive_Maund
Last 7 days
Time To Eliminate Your Wall Street Tax? - 20th Mar 18
The Beast from the East Snow, UK Roads Driving Car Accidents - 20th Mar 18
Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - 19th Mar 18
2018 Reversal Dates for Gold, Silver and Gold Stocks - 19th Mar 18
This Tech Breakthrough Could Save The Electric Car Market - 19th Mar 18
Stocks Set to Open Lower, Should You Buy? - 19th Mar 18
The Wealth Machine That Rising Interest Rates Create Conflict With The National Debt - 19th Mar 18
Affiliate Marketing Tips and Network Recommendations - 19th Mar 18
Do Stocks Bull Market Tops Need Breadth Divergences? - 19th Mar 18
Doritos Instant £500 Win! Why Super Market Shelves are Empty - 19th Mar 18
Bonds, Inflation & the Market Amigos - 19th Mar 18
US Housing Real Estate Market and Banking Pressures Are Building - 19th Mar 18
Stock Market Bulls Last Stand? - 18th Mar 18
Putin Flip-Flops Like A Drunken Whore On Bitcoin Cryptocurrency Legalization - 18th Mar 18
How to Legally Manipulate Interest Rates - 18th Mar 18
Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - 18th Mar 18
Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - 17th Mar 18
Strong Earnings Growth is Bullish for Stocks - 17th Mar 18
The War on the Post Office - 17th Mar 18
GDX Gold Mining Stocks Fundamentals - 16th Mar 18
Nationalism, Not the Russians, got Trump Elected - 16th Mar 18
Has Bitcoin Bought It? - 16th Mar 18
Crude Oil Price – Who Wants the Triangle? - 16th Mar 18
PayPal Cease Trading Crypto Currency Bitcoin Warning Email Sophisticated Fake Scam? - 16th Mar 18
EUR/USD – Something Old, Something New and… Something Blue - 16th Mar 18
DasCoin: A 5-Minute Guide to How It Works - 15th Mar 18
Stock Market Downward Pressure Mounting - 15th Mar 18
The Stock Market Trend is Your Friend ’til the Very End - 15th Mar 18
6 Easy Ways to Get What Women Want, for Less! - 15th Mar 18
This Isn’t Your Grandfather’s (1960s) Inflation Scare - 15th Mar 18
Eye Opening Stock Market Index, Volatility, Charts and Predictions - 15th Mar 18
Gold Cup At Cheltenham – Gold Is For Winners, Not For Gamblers - 15th Mar 18
Upcoming Turnaround in Gold - 14th Mar 18
Will the Stock Market Make Another Correction this Year? - 14th Mar 18
4 Ways To Writing An Interesting Education Research Paper - 14th Mar 18
China Toward Sustainable Economic Growth - 14th Mar 18
Stock Market Direction Is No Longer Important - 14th Mar 18
Trade Tariffs Defeat Globalists and Return Prosperity - 14th Mar 18
Stock Market Crash is Underway and Cannot be Stopped! - 14th Mar 18
Are Energy Sector Stocks Bottoming? - 14th Mar 18
Nasdaq Stocks Soars to New Record High After Strong Job Reports - 14th Mar 18
Bitcoin BTCUSD Elliott Wave View Calling for Rally toward $15,000 - 13th Mar 18
Hungary’s Gold Repatriation Adds To Growing Protest Against US Dollar Hegemony - 13th Mar 18
Record Low Volatility in Precious Metals and What it Means - 13th Mar 18
Tips for Writing and Assembling the Classification Essay - 13th Mar 18
Gerald Celente "If Rates go up too High, the Economy goes Down, End of Story" - 13th Mar 18
Stock Market Selloff Showed Gold Can Reduce Portfolio Risk  - 13th Mar 18
Silver Does it Again! Severe Consequences - 12th Mar 18
Has the Stock Market Rally Run Out of Steam? - 12th Mar 18
S&P 500 at 2,800 Again, Stock Market Breakout or Fakeout? - 12th Mar 18
The No.1 Energy Stock To Buy Right Now - 12th Mar 18
What Happens Next When Stock Market Investor Sentiment is Neutral - 12th Mar 18
Economic Pressures To Driving Gold and Silver Prices Higher Long-Term - 12th Mar 18
Labour Sheffield City Councils Secret Plan to Fell 50% of Street Trees Exposed! - 12th Mar 18

Market Oracle FREE Newsletter

Urgent Stock Market Message

Why the Smart Money is Betting on Renewable Energ - Brewing Solar Power Boom

Commodities / Solar Energy Jan 14, 2015 - 03:26 PM GMT

By: Money_Morning


Dr. Kent Moors writes: While everyone’s been fixated on oil, renewable energy has been gathering some serious steam.

Led by solar power, worldwide capital investment in “clean” energy surged by more than 16% last year.

In fact, spending on renewable energy was so strong in 2014, some have begun to label the recent rush into renewables as a “turning point” in the energy balance.

According to a report last week from Bloomberg New Energy Finance (BNEF), the total invested in renewable power jumped to $310 billion, just $17 billion shy of the all-time record in 2011.

But here’s the real kicker…

Since renewable energy is now much cheaper to generate, last year’s investment brought in almost double the clean electricity capacity versus what was realized only four years earlier.

That’s undoubtedly a bullish sign…

A Brewing Solar Power Boom

Of course, these figures don’t tell the whole story about renewables.

For one thing, the global renewable picture is very uneven. While new projects have moved forward in the Middle East and certain parts of Asia, the biggest move has been largely spearheaded by solar power investment in the U.S. and China.

Meanwhile, had it not been for some large-scale offshore wind farms in Europe, investment there would have been in negative territory. And in Australia, where there had been signs of a major initiative, lack of government support has resulted in an absolute contraction in support for renewables.

But as by the British newspaper The Guardian noted on Friday, BNEF chairman Michael Liebreich said that, “The investment bounce back in 2014 exceeded our expectations,” adding, “Solar was the biggest single contributor, thanks to the huge improvements in its cost-competitiveness over the last five years.”

In all, solar investment rose by 25%, while wind power rose 11% to account for a third of all investment in 2014. Meanwhile, energy efficiency and electric vehicles rose 10%, including the $2.3 billion raised by Tesla Motors. On the downside, biofuels investments fell 7% and biomass and incinerator projects attracted 10% less financing.

However, one thing is perfectly clear: China is emerging as a dominant player in renewable energy.

For the year, China accounted for $90 billion in renewable spending, a year-on-year increase of 32%. The U.S. ranked second with $52 billion, up 8%, while Japan totalled $41 billion, an increase of 12%.

Of course, totalling national performances is sometimes misleading when it comes to assessing the genuine impact on developing energy markets. There is no question, however, that the renewable market in general – and most certainly solar in particular – is gravitating toward Asia.

In addition to leading the table on total investment, China is also the center of next generation solar technology and is beginning to occupy a similar position in wind power.

Given the dramatic move in energy demand in Asia through 2035, the new balance emerging among different energy sources will be progressively determined by the needs and developments there.

Meanwhile, The Guardian notes that the mega-solar and onshore wind projects financed in 2014 included the $1 billion Setouchi solar project in Japan, the $1 billion Solar One plant in South Africa, and the $860 million Lake Turkana wind project in Kenya.

Additionally, there were also seven mega offshore wind projects, including the $2.6 billion Dudgeon project in U.K. waters and the $3.8 billion Gemini series off the Netherlands, which is the most valuable renewable energy investment ever made excluding hydroelectric. Rooftop solar also had a strong year, jumping 34% to $74 billion.

All of this occurred in the face of falling oil prices which had little effect on clean energy investments. According to Liebreich, “2014 was too early to see any noticeable effect on investment, and anyway the impact of cheaper crude will be felt much more in road transport than in electricity generation.”

Powering the Economic Recovery

On the other hand, as I have noted here in OEI on several occasions, the same thing is not true for the average returns of renewable energy stocks. The collapse in oil has hurt energy sector share prices virtually all across the board.

But as Ed Davey, the UK’s energy and climate change secretary, told The Guardian: ”Renewables are proving they can be cost competitive, which is why they are playing a key role in powering the economic recovery. We are transforming our electricity market [and] that’s why the U.K. is a leading destination for renewables and is number one for offshore wind. Since 2010, renewable electricity generation has almost trebled and renewable electricity investment has more than doubled.”

In agreement, Richard Black, director of the Energy and Climate Intelligence Unit, states that, “The figures show that renewable energy is increasingly cost-competitive, with solar in particular rapidly approaching parity with fossil-fuel generation. They suggest also that investors are growing weary of increasingly volatile fossil fuel markets,” while “some developing countries have increased low-carbon investment hugely – a staggering 88% in the case of Brazil.”

The concern going forward will be how the average investor can make money on the confluence of major project investments and the ongoing uneasiness about individual company strengths.

I will be discussing these issues again in the New Year. And as soon as the trends stabilize among the renewable providers on my tracking lists, I’ll have the foundation of an operational strategy. So stay tuned.

It’s shaping up to be a profitable year for this portion of the sector.

Source :

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2018 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules