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Environmental, security, location, incentives – all add up to a big future for renewable energy

Alternative Energy Stock Outlook – April 2012, By: Zacks Equity Research April 03, 2012 “……A worldwide industry association for solar photovoltaic electricity market, the European Photovoltaic Industry Association (EPIA) forecasts that the power generated from solar modules in Europe could be competitive in relation to conventional forms of energy by the end of the current decade. The major solar markets under survey were Germany, Italy, France, Spain and Britain…..
A major growth area in this space is Solar Energy…… , this unprecedented growth was spurred in part by declining installed solar photovoltaic (PV) system prices, which fell 20% in fiscal 2011 on the back of lower component costs, improved installation efficiency, expanded financing options, and a shift toward larger systems nationwide….

OPPORTUNITIES

Environmental advantage: Solar power is one of the most benign electricity resources. Solar cells generate electricity without air or water emissions, noise, vibration, habitat impact or waste generation. Over time, rapid population growth, depletion of non-renewable conventional sources, and escalating pollution levels will help shape a much more pronounced global focus on renewable projects….

Fuel risk advantage: Unlike fossil and nuclear fuels, solar energy has no risk of fuel price volatility or delivery risk. Although there is variability in the amount and timing of sunlight in the day, season and year, a properly sized and configured system can be designed to insure high reliability while providing a long-term, fixed-price electricity supply……

Location advantage: Unlike other renewable resources such as hydroelectricity and wind power, solar power is generally located at a customer’s site due to the universal availability of sunlight. As a result, solar power limits the expense and losses associated with transmission and distribution from large-scale electric plants to the end-users. For most residential consumers seeking an environment-friendly power alternative, solar power is currently the only viable choice……

Environmental legislations: Alternative energy companies are increasingly benefiting from new legislation in the U.S. stipulating installation of renewable sources of electricity generation as mandated by Renewal Energy Standards (RES)……

Subsidy programs: Governments, most notably in China, Japan, Canada, U.K., Australia, India and the Middle East, have increased their financial support for solar projects. In China, governmental authorities recently adopted a national feed-in tariff (FiT) policy for large scale alternative energy projects. China also expanded the Golden Sun Program, an upfront cost subsidy program, aimed primarily at distributed generation. In addition, according to the current draft of the 12th 5-year plan for solar energy, the government intends to raise the 2015 goal for total cumulative solar energy capacity to 15 GW and 50 GW by 2020.

In Europe, the European Union’s goal of a 20% share of renewable sources in the energy basket by 2020 will keep the flow of new projects going……
In Australia, the solar industry is driven by several regulatory initiatives that support the installation of solar PV modules in both rooftop and free-field applications, including the federal government’s nationwide Renewable Energy Target, which has set a renewable energy goal for Australia of 20% by 2020. Clean Energy Finance Corporation (CEFC) and Australian Renewable Energy Agency (ARENA), both established in 2011, will begin implementation in 2012. In India, the National Solar Mission includes a goal of installing 22 GW of solar power by 2022.

In the Middle East and Africa, several countries have announced sizeable solar targets…..  In the United Arab Emirates, Abu Dhabi has set a target of sourcing 7% of electricity supply from renewables by 2020 and in 2011 issued a tender for the first of three 100 MW PV projects….

Fortunes tied to crude: Alternative energy stock prices generally rise and fall in direct proportion to the price of crude oil. …..
Read the full analyst report on GXP….        http://www.zacks.com/stock/news/72420/alternative-energy-stock-outlook-april-2012

April 6, 2012 - Posted by Christina Macpherson | 2 WORLD, renewable