Indications are that renewable energy investments will fall in 2012 for the first time in 8 years. However, the news is not all bad, says Ernst & Young, with continuing capacity additions and “booming” emerging market activity. In particular, the South African and MENA regions are displaying strong growth.
“The transition to a more resource-efficient and low-carbon economy is inevitable,” states Gil Forer, Ernst & Young’s global cleantech leader. And, while renewable energy investment is expected to fall for the first time in 8 years in 2012, from the record US$237 billion (€183.08 billion) reaped in 2011, the news should not necessarily be taken as negative.
Indeed, as Ben Warren, Ernst & Young’s energy and environmental finance leader points out, while prices have dropped, capacity is continuing to be added and emerging market activity is “booming”.
As corporations evaluate the risks in regards to energy security, energy prices, the regulatory environment, brand and pressure from stakeholders; they are beginning to focus on optimizing their energy mix through increasing their investment in – and deployment of – renewable energy,” explains Forer.
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