Renewable Energy Deals Hit Record High in 2011

There’s no question that our current energy sources aren’t sustainable. The scientists have sounded the alarm years ago now, and politicians along with businesses are slowly starting to catch up. Still, the transition to renewable energy sources is happening, and now new numbers from 2011 show that renewable energy deals hit a record high during this past year. These figures show some interesting improvement in how companies are rapidly switching around and adopting strategies that ensure new constructions and new projects use renewable energy.

According to the numbers that came out, global renewable energy deals climbed around 40% to a high of $53.5 billion last year, from $38.2 billion in 2010. This is a surprising amount, showing that more conversions were done than ever before. These figures include both solar and wind, as well as energy efficiency by those firms. It shows that spending has gone up, which may be due to several factors. Of course the realization that they can’t rely on gas and oil for much longer, but also the global economy slowly returning to normal levels, after a long depression, may contribute in this type of trading becoming more popular, and with more money spent. Often, new installations require these types of deals in order to get the needed solar arrays or turbines, since the fields are still pretty young.

This is all proof that the renewable market is maturing. What’s the future looking like? Last year, one in three deals were for solar energy, and with prices going down in the equipment needed to produce that type of energy, it’s likely that we’ll see that particular source take a more central role. However, not everything is looking green. China right now is having a lot of over production problems, and many factories are being left at overcapacity, which will reduce the cost of traditional energy, making renewable energy less attractive financially. It remains to be seen whether the companies that have been making a concrete effort to go into renewable sources will keep doing that when the financial situation changes, and it becomes much more economical again, at least for a certain time, to go with what China has to offer.

Overall, there’s no doubt that the renewable energy market will keep growing, and as such these numbers will keep going up. The only question now is how fast, and whether it will be enough to save the few natural resources we do have on the planet. Solar energy in particular will certainly prove a pivotal role in the way we produce and consume energy throughout the world, and the civilized countries will likely have to lead the way for the others to follow.

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