| Oil Imports and Oil Prices Drive United States to Increase Renewable Energy Capacity|
August 29, 2007
New analysis from Frost & Sullivan, North American Renewable Energy Market: Investment
Analysis & Growth Opportunities, reveals that revenues
in this market totaled $17.37 billion in 2006, and are
likely to reach $24.6 billion in 2010.
Faced with rising oil imports and mounting concerns
over the environment, the U.S. and Canadian governments
will undertake proactive initiatives to reduce their
dependency on fossil fuels. In January 2007, the U.S.
House of Representatives passed the Clean Energy Act.
When enforced, this legislation expects to transfer more
than $14 billion from certain subsidies to investments
in clean energy. Likewise, the Canadian government has
launched three new ecoENERGY initiatives for boosting
renewable energy and reducing greenhouse gas emissions.
These initiatives will likely provide new direction for
the future growth of the North American renewable energy markets.
New analysis from Frost & Sullivan, North American
Renewable Energy Market: Investment Analysis & Growth
Opportunities, reveals that revenues in this market
totaled $17.37 billion in 2006, and are likely to reach
$24.6 billion in 2010.
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provides manufacturers, end users, and other industry
participants with an overview of the latest analysis of
the Investment Analysis & Growth Opportunities in the
North American Renewable Energy Market, then send an
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johanna.haynes[.]frost.com with the following
information: your full name, company name, title,
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receipt of the above information.
"Rising oil imports and the volatility of oil prices
drives the United States to increase its renewable
energy capacity," notes Frost & Sullivan Research
Analyst Saranya Sundaram. "The Energy Policy Act was
passed in the year 2005, targeting that the amount of
renewable energy fuels consumed each year should reach
7.5 billion gallons by the year 2012. This is in line
with U.S. President George Bush's vision to reduce 75
percent of the country's oil imports from the Middle
East region by 2025."
Furthermore, the renewable portfolio standards (RPS) and
renewable fuel standards mandates will likely propel the
market's growth. RPS is a flexible market-driven policy
formulated to ensure that a growing percent of
electricity produces from renewable energy sources and
is enforced in nearly 21 states in the United States.
Keeping with the mandate's objectives, California has
set a target of 12 percent of its total electricity to
generate from wind and geothermal energy. New York State
will make efforts to increase its total electricity
generated from renewable energy sources from 19 percent
in 2006 to 25 percent by 2013.
Nevertheless, increasing raw material costs, high
initial capital outlay and raw material availability
pose notable challenges for market participants and
could hamper market growth.
"Raw materials supply constraints are being noted in the
solar energy segment, where the manufacturers face a
shortage of silicon, the key raw material for solar
energy generation," says Sundaram. "The growth of the
wind turbines sector could also be impacted by the
short-term price increases caused by the high steel
costs and shifting currency valuations."
Addressing these challenges, solar companies will
increasingly invest in R&D aimed at finding a suitable
substitute to silicon feedstock. Companies such as
Nanosolar and Miasolé have begun to use copper alloy and
copper-indium-gallium-diselenide, which are easier and
flexible to use. Use of such technologies will also
reduce solar energy cost.
North American Renewable Energy Market: Investment
Analysis & Growth Opportunities is part of the Financial
Benchmarking and Analysis Growth Partnership Services.
It provides financial benchmarking analysis of the
biometrics industry, including year-to-date performance
of Frost & Sullivan renewable energy stocks and
valuation multiples for renewable energy companies,
growth monitor that ranks companies based on prospective
revenue growth, and industry growth outlook that
discusses market estimates until 2010. In this research
service, Frost & Sullivan's expert analysts thoroughly
examine the following energy markets: wind, solar,
hydro, ethanol, biomass and geothermal. Interviews with
the press are available.
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