How the stimulus saved the green sector

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    Apr 27, 2011 10:31 PM GMT January 1st, 2011 SBI Energy (Rockville, Maryland, U.S.) released a new report examining clean energy investments through the American Recovery and Reinvestment Act of 2009 (ARRA or “stimulus act”) and their impact on markets within the power, transportation and building sectors. The company states that its report: “ARRA Report Card: Two Years Later”, creates a time-capsule analysis of the impact of ARRA investments, which it says include allowing U.S. renewable energy markets to grow during the recession.

    “ARRA energy-related funding not only presents potential near-term economic benefits, but also long-term economic and strategic investment and a transformative opportunity for the energy sector,” states the report’s introduction. “Without ARRA investments, it is likely that the pace of renewable energy project construction and manufacturing growth would have otherwise slowed dramatically due the sharp economic and financial downturn over this period.”
    About $67 billion of funds will be channeled to low-carbon energy this year from $190 billion pledged to the industry by world governments since the start of 2009, the groups said today in a study released in Davos, Switzerland. Just over half that amount will follow next year, and about a fifth in 2013.

    In 2010, about $59 billion was paid out, study showed. That helped spur a record $243 billion of investments in renewable power, said New Energy Finance Chief Executive Officer Michael Liebreich. The WilderHill New Energy Index of 100 companies developing low-carbon technologies slid 15 percent last year.

    “It is scary to think what might have happened to clean energy equipment providers’ valuations had the stimulus funds not arrived,” Liebreich said in an e-mailed reply to questions. “The stimulus has played an important part in maintaining the momentum of the sector.”
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    Apr 27, 2011 10:34 PM GMT
    From SBI Energy's report: Aided by ARRA investments, The Council of Economic Advisors (CEA) reports that domestic manufacturing capacity for solar photovoltaic (PV) modules is forecasted to grow from less than 1 gigawatt per year in 2008 to nearly 4 gigawatts per year in 2012.

    - U.S. wind power capacity grew 40 percent in 2009 over the prior year, despite weak economic and investment conditions. In July 2010, the CEA reported that ARRA was responsible for
    approximately 6 gigawatts of wind capacity installation that might not otherwise have occurred in 2009.

    - U.S. manufacturing capacity for components such as gearboxes, generators, and large casted steel parts, has lagged behind actual demand. The 48C Manufacturing Tax Credit program awarded $346 million in tax credits to 52 wind manufacturing projects to facilitate additional U.S. manufacturing capacity to ensure the U.S. is able to supply a growing domestic market through domestic production.

    They charge almost $5000 for an online copy of their report. icon_lol.gif