There have not been many go-go industrial sectors since the financial crisis began but one of the few has been green energy. As if to underscore the point, last year’s investments in renewable electricity and fuel projects around the world broke all previous records. But they may also have marked a peak. The two big drivers of the green energy boom have been political will and state largesse, both of which are now – at least in the developed world – starting to wear a little thin.
Global investment in clean energy rose by 5% to a record $280bn in 2011, according to Bloomberg New Energy Finance (BNEF). Its definition excludes large hydro and – to the exasperation of the fission brigade – nuclear. As it points out, total ‘clean energy’ investment has grown nearly five times over since 2004, when BNEF first started keeping score and the sector attracted $54bn.