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Favorable Policies Trigger Continued Renewable Energy Investment

February 13, 2012
Favorable Policies Trigger Continued Renewable Energy Investment

LONDON, UK, 13 February 2012 -  US government support for its renewable energy sector will continue to attact investment and will cement America's status as one of the largest producers of solar and wind power worldwide, according to a new study by business intelligence specialist GlobalData.

The report notes that in recent years the US government has invested considerably in its renewable energy agenda, providing a supportive regulatory framework and financial backing for the growth and development of renewable sources to bolster energy security and independence, while addressing climate change issues by reducing carbon emissions.

The growth of the renewable energy sector in the US has been led by the state level Renewable Portfolio Standard (RPS), combined with other tax incentives and subsidies  

GlobalData has found that one of the most significant state-level support programs is the Renewable Portfolio Standard (RES), which places an obligation on utilities to buy a certain portion of their electricity from renewable sources within their respective states.

The use of Renewable Energy Certificates (RECs), which form part of the RES, has increased investment in renewable energy generation by forcing utilities to obtain proof of investment to reach specific mandates.

Production Tax Credits (PTCs) have proven themselves as another successful policy instrument in encouraging the development of the US renewable energy sector.

Other incentives, such as business and residential tax credits, loans, grants and accelerated depreciation provisions, have also provided support. In addition to these federal policies, different state governments also offer various state-level policies and incentives for the promotion of renewable energy, including feed-in tariffs schemes.

The required policy support for US renewables has been facilitated by the passing of the American Recovery and Reinvestment Act (ARRA), which awarded more than US$80 billion for renewable energy and energy efficiency projects.

The US renewable energy industry has thrived under these policies and regulations, with some US states planning to exceed the RPS targets by generating 10% of their total electricity from renewable energy by 2012 and 25% by 2025. 

The U.S. analysis is part of a larger report by Globaldata entitled North and South America Renewable Energy Policy Handbook 2011, details of which are available on line.


Globe _2012_180x 150_01The Clean Technology Continuum: Financing Innovation from Early-Stage Through to Commercialization

Clean technology represents a diverse range of products designed to greatly reduce or eliminate negative ecological impacts and promote the responsible use of natural resources. At GLOBE 2012, taking place in Vancouver, Canada  March 14-16, 2012, a distinguished panel of experts will explore the financial fimensions of clean energy technology development, from early stage through to commercialization, and will explore some of the biggest emerging opportunities in the clean technology sector.

Confirmed Participants: 

Sheeraz Haji, CEO, Cleantech Group, USA (Moderator)

Sally Gutierrez, Director of Environmental Technology Innovation Cluster, US Environmental Protection Agency, USA , 

Check here for more information on GLOBE 2012 

 
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