The fallout from Wall Street’s recent and ongoing crisis has certainly not been confined to the USA, with countries around the world reeling from its effects.
But what does this mean for the renewable energy sector?
The timing of the disaster has a lot to do with the way the road ahead looks for wind and solar power around the world. While financial giants such as Lehman Brothers and others in trouble were involved in financing renewable energy projects; there has been a major positive occurrence for the industry late last week. On Friday, the USA tax credits for wind and solar power which were set to expire towards the end of this year were renewed for another 8 years.
Many major solar power and wind energy ventures had been put on hold over the last few months as there was so much uncertainty over the tax credit issue. This extension will help stimulate the industry and advancements in renewable energy technology.
Ron Kenedi, vice president of Sharp Solar stated; “The solar industry is now scaling up to bring down manufacturing and installation costs, build its infrastructure, grow public awareness, and attract customers. The 8-year extension of the solar investment tax credit will help the solar industry flourish to its full potential”
While the cost of getting loans for solar and wind equipment projects may rise, the price of everything energy related is also increasing. For example, according to the Australian Government’s climate change advisor, Professor Ross Garnaut, electricity prices will rise between 21 and 37 per cent under emissions trading in the not too distant future. These types of predictions make renewable energy alternatives all the more attractive.
Regardless of the recent thumping that Wall Street has endured and the associated fallout; the global renewable energy industry overall looks set to continue successfully navigating the world’s troubled financial waters.
