Renewable sources accounted for 2/3 of new electricity generation capacity in Europe in 2009

A total of 27.5 GW of new power capacity was constructed in the EU in 2009. Out of this, 10.2 GW (38%) was wind power; 6.6 GW (24%) gas fired power stations; 5.8 GW (21%) PV; 2.4 GW (8.7%) coal fired power stations; 580 MW (2.1%) biomass, 570 MW (2.1%) oil; 440 MW (1.6%) waste, 440 MW (1.6%) nuclear, 390 MW (1.4%) hydro and 120 MW (0.4%) CSP.

For the second year in a row, wind energy is the leading electricity generation technology in Europe and the renewable share of new power installations was 62% in 2009.

Renewable Energies are a very dynamic field with high growth rates and therefore it is of great importance to base decisions on the latest information available as otherwise important development trends might be missed. For certain renewable energy technologies the development of effective policy measures is not yet possible due to the lack of robust, consistent and up to date data.

These Renewable Energy Snapshots are based on various data providers including grey data sources and tries to give an overview about the latest developments and trends in the different technologies.

The Renewable Energy Snapshots monitor the development of renewable electricity generation, and whether the 2020 targets can be reached.

For electricity generation from Hydro Power (2009: 351 TWh), no major increase is expected as most large hydro resources are already in use today. In addition, it is not clear if the same resources will still be available on a continuous base in the future if extreme weather conditions become more frequent and additional water resource needs might arise. Small Hydro is an option, but was not investigated in this report. However, pumped Hydro will play an increasingly important role as storage capacity for the other Renewable Energy Resources.

Additional renewable electricity generation technologies include geothermal, tidal and wave power. These technologies are in a research and development phase and no major market penetration is happening yet. Therefore, they are not yet included in this Snapshots, but it is expected that their market introduction will take place within the next decade.

It is expected that if the current growth of electricity generation from biomass continues, bioelectricity generation could be around 200 TWh in 2020 up from 108 TWh in 2008. An uncertainty in this estimation is clearly the competitive use of biomass for other energy uses like heat and transport fuels. To what effect this will change the development of bioelectricity is not yet clear. Bioelectricity generation, especially via biogas or CHP has the big advantage that biomass is storable and the
electricity can be generated on demand. This variable dispatchability is extremely important for a renewable energy supply and increases the value significantly.
In Europe, installed capacity from Concentrated Solar Power is still small today (430 MW in May 2010), but is steadily accelerating. According to the European Solar Thermal Electricity Association (ESTELA) 30 GW of CSP capacity could be installed in Europe generating around 100 TWh of electricity in 2020.

In Europe Solar Photovoltaic Electricity Generation has again increased its cumulative installed capacity by more than 50% to 16 GW in 2009 and for 2010 installations of up to 10 GW are expected. This would result in a capacity almost 9 times as high as was foreseen in the White Paper as the Target for 2010. The European Photovoltaic Industry Association published their ambitious vision plan for
2020 last year. The new target calls for up to 12% of the European electricity generated with solar photovoltaic electricity generation, or 380 to 420 TWh. The necessary growth rate would be 36% annually, which is much lower than what the industry has seen in the last 8 years. From an industry point of view the target is ambitious, but achievable, however it will need accompanying measures to ensure that the electricity grid will be able to absorb and distribute the generated solar electricity. This is especially important, because 12% of total electricity from solar photovoltaics translates to a cumulative installed PV capacity of 350 GW or close to 60% of the current total European thermal electricity generation capacity (590 GW in 2008) or more than 40% of the current total European electricity generation capacity (800 GW in 2008). Therefore, efficient transmission and storage
systems, as well as modern supply and demand management, have to be available to fulfil this vision.

Wind energy is already the number one in newly installed capacities in Europe. With more than 74 GW of cumulative installed capacity in 2009, it exceeded the White Paper target of 40 GW by more than 80%. The new target of the European Wind Association is aiming at 230 GW installed capacity (40 GW offshore) in 2020 capable of providing about 20% of European electricity demand.

It can be concluded that if the current growth rates of the above-mentioned Renewable Electricity Generation Sources can be maintained, up to 1,600 TWh (45 – 50%) of renewable electricity could be generated in 2020. With this contribution the renewable electricity industry would significantly contribute to the fulfilment of the 2020 targets.

Last but not least it has to be pointed out that this significant contribution of the
renewable electricity sector will not come by itself. Without increased political support, especially in the field of fair grid access and regulatory measures to ensure that the current electricity system is transformed to be capable to absorb these amounts of Renewable Electricity, these predictions will not come about. In addition, the different renewable energy sources will need for the next decade substantial public R&D support as well as accompanying measures to enlarge the respective markets, as cost reduction and accelerated implementation will depend on the production volume and not on time!

Download "Renewable Energy Snapshots 2010" report: http://re.jrc.ec.europa.eu/refsys/pdf/Snapshots_EUR_2010i.pdf

EDF and First Solar announce venture to build largest solar manufacturing plant in France

EDF Energies Nouvelles (EDF EN) and First Solar, Inc. (Nasdaq: FSLR) today announced a venture to build France's largest solar panel manufacturing plant. With an initial annual capacity of more than 100MWp, the plant will produce solar panels made with First Solar's advanced, thin-film photovoltaic technology. This new venture will support the recently announced goal of the French government to become a leader in sustainable energy technologies including solar electricity. At full production, projected for the second half of 2011, the plant will employ more than 300 people.

Under the terms of the arrangement, First Solar will build and operate the plant in France. The plant represents an expected investment of more than EUR 90 million. The initial annualized capacity of the plant is expected to exceed 100MWp, making it the largest manufacturing facility for solar panels in France. EDF Energies Nouvelles has agreed to finance half of the capital expense and plant start-up costs and will benefit from the plant's entire output for the first 10 years. First Solar and EDF EN intend to announce their decision on the site location within the next few months.

The investment decision was announced in the presence of French Sustainable Development Minister Jean-Louis Borloo. "I salute the decision of EDF Energies Nouvelles and First Solar to invest and create jobs in France's solar sector, which has begun to take off since the Grenelle de l'Environnement," he said. "This investment represents a veritable turning point for the photovoltaic industry and confirms that France is more than ever in a position to play a leading role globally."

Pâris Mouratoglou, Chairman of the Board of EDF Energies Nouvelles, said, "This agreement represents a key milestone in the strategy of our group, which has the ambition to be a global leader in solar energy." The company successfully raised EUR 500 million last year to finance its expansion in the photovoltaic sector. It has set itself a target of installing 500MWp in photovoltaic capacity for its own account by 2012. "Securing a competitive supply is essential for us to participate in the development of a large French solar market," he said.

"We have successfully built a number of projects with First Solar panels. This strategic agreement is the result of a relationship built on trust and offers our two groups solid and promising potential," he said.

Mike Ahearn, Chairman and Chief Executive Officer of First Solar, said, "The decision to invest in France reflects our firm belief in the French market and its great potential. It represents a vote of confidence in the policies being developed by the French government since the Grenelle de l'Environnement to promote renewable energies and allow solar electricity to compete economically with other forms of energy."

"This decision by First Solar and EDF EN is a sign of our shared commitment to the future of solar electricity," Mr. Ahearn said. "We commend President Nicolas Sarkozy's leadership in promoting long-term policies to build a more sustainable energy future not just for France but the world. Countries that create market frameworks that enable solar and other renewable energies to achieve commercial scale will reap the greatest benefits in private sector investment, technological innovation and job creation." The long-term commitments of the French Government to provide the policy and regulatory frameworks that enable robust solar markets and of EDF EN to invest in developing and expanding the French market were key factors in our decision to invest in France, he said.

First Solar's manufacturing site will also include a facility for recycling solar panels, France's first such facility and Europe's only solar panel recycling plant outside of Germany.

European Tech Tour Names Most Promising Cleantech Companies in Europe

Selected Companies for the 2009 Cleantech Summit Announced;
24 Companies Stand to Benefit from Investment Funding

The European Tech Tour's inaugural Cleantech Summit 2009, in which is being held today and tomorrow in Geneva, will showcase 24 leading European start-up and early stage cleantech companies. The Summit will support the development of start-ups developing products and services that will have a strong influence on combating climate change and alleviating the environmental impact of business. The Summit is the first cleantech event in the European Tech Tour's series of vertical events which bring together Europe’s most innovative privately-held technology companies with the vision and resources of Europe's top venture capitalists. Cleantech is currently the subject of intense political and social interest and is one of the fastest growing investment markets.

During the Summit, delegates will hear presentations from the 24 winning companies, who have been selected from a pool of over 300 applicants. The selected companies span cleantech segments such as: solar, wind, wave and bio energy; energy efficiency and storage; clean transport; biomaterials; and waste management. The top-24 companies were selected by a committee composed of experienced cleantech investors and professionals across Europe.

The winning companies include:
* Alertme
* Amminex
* Aquamarine Power
* Bekon
* BPS
* CellEra
* ChapDrive
* Chemrec
* Concentrix Solar
* CPT
* EVO Electric
* Heliatek
* Hymite
* Juice
* Novaled
* NovoPolymers
* Power Plus Communications
* Recupyl
* ReVolt Technology
* SiC Processing
* Solarion
* Torqeedo
* Watteco
* Wave Star Energy

In addition, panel discussions will address timely topics such as: Smart Grids, Smart Meters and the Applications for Start-ups; and The Future of Renewable Energy. The sessions will have participants from industry (Schneider Electric, Honeywell, Statkraft, BP Alternative Energy, AXPO, Bard Engineering), venture capitalists and start-ups.

There will also be a number of keynote speeches including:

* Mr Pieter Wasmuth, CFO of RE Power, who will provide the keynote address at the opening gala dinner. REpower Systems is one of the leading manufacturers of wind turbines for onshore and offshore applications;
* Mr Pierre-Francois Unger, State Councillor for the Department of Economy and Health, Canton Geneva;
* Mr Michel Jarraud, Secretary General, World Meteorological Organisation will also be addressing the Summit attendees.

An international delegation of more than 140 influential investors, technology industry leaders, service providers and academics has signed up for the event.

“This summit is about what our society needs to address the climate change issue: collaboration. We are facilitating the collaboration between entrepreneurs and investors, start-ups and established companies, energy generators and energy users; and between business and politics,” said Bernard Vogel, President Cleantech Summit 2009. "Some very exciting start-ups are taking part in the Cleantech Summit 2009, many with the potential to impact consumers' lives for the better in the long term."

Launching of European Algae Biomass Association

The European Algae Biomass Association will be officially launched during the first EABA Conference–General Assembly to be held June 3-4 in Florence, Italy.

The University of Florence and the European Biodiesel Board, together with number of major stakeholders in the EU algae sector, have announced the launching of the association. The EABA was founded to foster synergies among science and industry, while cooperating with decisionmakers for the promotion of development in research and technology in the field of algae.

Algae and aquatic biomass are increasingly raising the interest of the scientific community, industry representatives and political decisionmakers as they represent one of the most promising renewable sources for a wide range of third-generation low-carbon applications in the field of renewable energies, biofuels (including jet fuels), nutrients, pharmaceuticals, animal feed or biobased products (bioplastics, biocosmetics, etc.).

In all these sectors, algae and aquatic biomass hold the potential to achieve a real revolution toward a fully sustainable economy. Algae have the potential to grow and produce impressive amounts of biomass using for instance sea water (a virtually unlimited raw material) and reduced surfaces (even of unproductive land) where a bioreactor or a pond can be installed to grow algae. This could be feasible today, but a number of technical, legal and scientific obstacles still need to be solved to bring down the final price of algae biomass to an economic level and to produce a fully reliable quality product. This needs to be improved, while avoiding over-enthusiastic announcements and promoting efficient and responsible research. This is the objective of the newly founded EABA, which aims to support the efforts of the various actors in the algae sector in order to make this happen. The development of research toward an algae industry deserves today to be supported as a priority in light of the major challenges Europe is facing to reduce greenhouse gases, improve energy supply security and promote technological excellence.

EABA members and supporters constitute a large and solid group of major stakeholders inside and outside of the EU, within academia, political and industrial decisionmakers, including the European Commission, the UN’s Food and Agricultural Organization, the EBB, the University of Florence, the Ben-Gurion University in Israel, the Imperial College in London, the University of Wageningen and the companies Roquette and Diester in France, Repsol in Spain, Neste Oil in Finland, SBAE Industries in Belgium and many others, who will participate and contribute to the EABA conference.

http://www.eaba-association.eu

European Tech Tour Association Launch First Cleantech Summit

Call for Applications Now Open for Europe's Top Cleantech Start-ups

The European Tech Tour Association (ETT) announced the launch of the ETT Cleantech Summit 2009, a sector-specific event focused on bringing together Europe's most innovative Cleantech start-ups with leading venture capitalists and senior industry professionals. Selected companies will present to an international delegation of more than 130 influential investors, technology industry leaders, service providers and academics, offering participants the opportunity to network, develop partnerships and potentially generate financing. Cleantech start-up submissions for the event, which will be held June 17-19 in Geneva, Switzerland, are now being accepted and potential applicants should register online before April 15th at http://www.techtour.com/cleantech09/how_to_register.php.

The Cleantech Summit is designed to profile the green entrepreneurs of the future, and provide networking opportunities for the participants and visiting delegates from industry and finance. Given the current market dynamics and government policy and investment priorities, Cleantech is one of the key growth areas for Europe's technology industry. The Cleantech investment community in Europe and Israel is relatively small, but developing rapidly. The Cleantech Summit provides unique visibility and access to this community for the short-listed entrants.

"Cleantech offers the green shoots for Europe's technology industry," said Bernard Vogel, President, Cleantech Summit. "The market conditions are undoubtedly tough, but the combination of private sector ingenuity and government-led necessity is driving a new wave of interest in clean and green technology. Bringing together entrepreneurs and investors will help convert these green shoots into positive growth prospects for Europe."

Companies based or incubated in Europe and Israel are eligible to participate in the Summit. Companies need to submit a full company profile, latest business plan and draft presentation together with the online registration form. Each submission is then reviewed by two members of the selection committee, comprised of 20 senior-level business leaders from various backgrounds including venture capital, technology, research and economic promotion. The Selection Committee will identify the 30 most promising companies, and the finalists will be notified by late April, who will then be invited to present at the Summit in June.

The ETT Cleantech Summit 2009 is presided over by Bernard Vogel of Endeavour Vision. The Vice President of the Selection Committee this year is Alexis Figeac of Entrepreneurs Fund and the Vice President of Sponsoring is Alexander Banz.
http://www.techtour.com/cleantech09/

UK Auctions First Carbon Permits; Government Hoarding Revenue

Cross-posted from WattHead - Energy News and Commentary and the Breakthrough Institute

The UK Government auctioned the first four million allowances to emit greenhouse gases under their portion of the European Union's Emissions Trading System this week, raising £54m ($80.9m). However, the government is drawing fire for failing to earmark the auction revenues to investments in clean energy and energy efficiency that could further cut emissions and help reduce the costs of compliance with the cap and trade program. Instead of reinvesting the revenues in clean energy ventures, the government is reportedly planning to add revenues to the general budget.

The Financial Times has details on the auction:

"The first auction of carbon dioxide permits netted the government £54m ($80.9m) on Wednesday as bidders fought for the right to emit greenhouse gases.

Almost 4m permits were sold in an auction that was four times over-subscribed. Previously, all of the emissions permits allocated to UK businesses under the European Union's trading scheme were given out free.

The government has pledged to auction another 80m permits in the next four years, which is likely to bring in revenues of more than £1bn. The identities of bidders were not disclosed, but electricity producers were expected to be the main buyers as they had their free allocation of permits cut by 30 per cent.

...

The free allocation of permits in the first phase of the scheme, from 2005 to 2008, enabled power companies in the UK and other countries to make windfall profits by raising electricity prices to cover the notional cost of having to buy permits, despite receiving them free. The government said on Wednesday the auctions should not result in further electricity price increases, as the cost of permits had already been factored in.

The UK is pushing for power generators to have to pay for all of their carbon permits in the third phase of the EU scheme, from 2013, arguing that electricity producers tend to be well-insulated from international competition."

However, the UK government apparently isn't planning to spend the money raised by the auction on clean energy investments and is instead putting the funds into the general coffer, the UK Guardian reports:

"The UK government was under fire today for "undermining" the European Union's fight against climate change by auctioning off carbon allowances for the first time and not earmarking the cash for "green" projects.

Around four million permits are being distributed today under a new phase of the European Union's (EU) emissions trading scheme (ETS) with expected receipts of up to £60m going to the Treasury for general spending purposes.

"The policy of the UK government on this issue undermines the very purpose of the EU ETS... Auctioning undermines this flexible mechanism as it takes money away from those who can do something about climate change, the emitters, and it gives it to those who can't, the politicians," said James Emanuel at emissions trading broker, CantorCO2e.

The Institute for Public Policy Research (IPPR) said ministers should change their mind and use the cash specifically for projects such as improving energy efficiency of homes, investing in low-carbon technologies and helping poorer countries cope with climate change.

"This is a great opportunity to help poorer households make their homes both cheaper to heat and warmer, and create jobs through investment in new green technologies," said Lisa Harker, IPPR co-director.

Keith Allott, head of climate change at WWF-UK, agreed saying the review by Lord Stern into the economics of climate change had shown that tackling the problem made sense financially. "This battle can't be won if we don't find the money to invest in solutions and kick-start new green industries," explained Allott."

More on the EU ETS price and auction format later in the article:

"The price of emission allowances have plunged by nearly 30% since September to around €16.50, partly because there are fears that the auction will flood the market and partly because a recession will cut industrial output and reduce pollution worldwide.

The ETS scheme implements an overall cap on the amount of emissions countries can produce, allocates carbon allowances to companies and then allows them to buy or sell the permits to cover shortfalls or profit from cutting their emissions.

Phase II of the scheme, which covers energy generators and heavy industry and aims to cut emissions by encouraging the market to produce carbon reductions at least cost, allows for up to 10% of permits to be auctioned.

In the UK, 7%, or 85 million, permits are being auctioned over five years of the scheme to 2012. The main target of the auction is energy companies which have lost 30% of their free allowances."

Odersun Raises $90 Million

Odersun AG, a leading developer and manufacturer of flexible thin-film CIS solar cells, modules and applications for power plants and building integrated solutions (BiPV), announced today that it has secured EUR 61 million ($90 million) of funding, including EUR 40 million from a Series B financing round and an additional EUR 21 million in grants from the federal state of Brandenburg, to build its second factory SunTwo.

The financing was led by Virgin Green Fund (US/UK) with participation from PCG Clean Energy & Technology Fund (US) and AGF Private Equity (a member of Allianz Group, France), in addition to existing investors Doughty Hanson Technology Ventures (UK) and Advanced Technology & Materials (China).

Odersun will use the funds to build its new factory. The solar company is focused on the mass production of standard solar modules based on proprietary roll-to-roll manufacturing process at competitive prices. Its products are uniquely positioned to address the overall cost structure of solar power plants and the requirements of the fast-growing market for building integrated photovoltaic (BiPV).

"Our modules can be produced in any form, any size or any power, flexible or rigid, based on the individual design and the packaging requirements of our customers for power plants and building integration", explains Odersun CEO, Ramin Lavae Mokhtari.

European energy masterplan unveiled

The European Commission has officially unveiled its much-anticipated (and much-leaked) energy package, containing cross-continental proposals on how to reach the targets agreed last year. The headline figures are to cut CO2 emissions by at least 20% by 2020 (rising to 30% if global targets can be agreed), and to source 20% of energy supply from renewable generation.

The primary mechanism is the extension of the EU Emissions Trading System (ETS). The first phase of this programme was a less than spectacular success, with too many permits doled out by compliant national governments to favoured power generators. The extended scheme, beginning in 2013, will include full auctioning of permits to the power sector which (economists say) will help maintain a realistic price and thus achieve genuine emission reductions. Auctions will be phased in for other sectors including refineries and aviation.

Revenues from the permit auctions will partly go towards supporting innovation in renewables, carbon capture and storage, and other relevant R&D, managed and distributed on a national basis. As pan-European revenues from the ETS are projected to reach up to Euro50bn a year, this clearly has the potential to give the European cleantech industry a huge funding boost.

The ETS will also be extended to cover greenhouse gases other than CO2 and involve all major industrial emitters. Year-on-year reductions will aim to reduce total emissions under the scheme by 21% from 2005 levels.

Net emission reductions of 10% are meanwhile mandated for industries not covered by the ETS, including buildings, transport, agriculture and waste. National targets vary, depending on the state of economic development, with rich countries facing tougher targets - the UK has a legally binding 16% target while Poland, for instance, is allowed an increase of up to 14% in non-ETS emissions.

The binding target for the share of renewables in energy supply also varies depending on national circumstance - the UK has a 15% target, while Sweden aims for 49%. Trading between nations is allowed - and nuclear doesn't count.

Controversially, the overall renewables target also includes a 10% biofuels target in each member state. The UK Environmental Audit Committee this week called for a moratorium on increasing the biofuel allocation until robust sustainability standards can be put in place. Most crop-based biofuels will have a tough time proving their sustainable credentials - cellulosic and algal fuels have a much stronger case, but are as yet some way from commercialisation.

Another potentially valuable step is that state aid for renewable power generation schemes will now be allowed, so long as it just covers the difference between production costs and market prices. That should help any national government which wants to boost its renewables industry.

It's a decent enough set of proposals, offering plenty of opportunities for cleantech companies. It's questionable whether the targets are tough enough - the stated aim is to cap the mean global temperature increase at 2°C. According to the latest science, that's probably rather naive. But the main thing now is to get the international mechanisms in place, and to develop the cleantech industries, that will allow further necessary reductions to be achieved.

Clean Ventures.

French Company to Build 32MWp of Solar Parks

French photovoltaic utility Solaire Direct and a leading French bank, Caisse des Depots, announced a JV company, Solaire Durance, which will build 32MWp in the South of France (Var region). The 32MWp will be split among 5 different solar parks, and the first solar park is expected to come online in the second half of 2008.
The installer, Solaire Direct was established in October 2006, and they raised €6.1 million of funding in June 2007 (from companies including TechFund, Schneider Electric Ventures, and Demeter Partners). They are now investing €3.81 million of that money in this JV, while Caisse des Depots is investing €4.44 million. Solaire Direct will own 50.25% of the new company.
The total spend on the 32MWp of solar parks is expected to be €140 million. 20% of this will be from direct investment (€28 million), and 80% will be borrowed.

Pirelli sets up solar power jv with Global Cleantech

MILAN - Pirelli & C SpA unit Pirelli Ambiente said it is setting up a joint venture in the photovoltaic solar energy sector with specialist clean energy private equity fund Global Cleantech Capital.

The venture, called Solar Utility SpA, will be owned 50:50 by the two partners and expects to invest 24 mln eur over the next five years to set up photovoltaic plants with 50 MW capacity, it said.

Solar Utility will install and own photovoltaic plants for owners of commercial and industrial buildings, supplying them with green energy at competitive prices,' it said in a statement.

The venture will sell completed plants to investors, who will be able to get a stable long-term return, supported by government incentives to be handed out over a 20-year period, it said.

Italy's photovoltaic industry is growing at more than 30 pct a year and this trend can accelerate in the next five years, it said.

Global Cleantech is active in a range of clean technologies in Europe and north America, investing in more than 18 companies in last five years, including Norway's Renewable Energy Corp.

European investment - must do better

Clean energy is poised to become a significant high-growth industry for Europe, according to a new survey of venture investment. But there's no room for complacency – Euro4.5bn of new investment is needed over the next three years to match the growth of the US sector.

The report – commissioned by the Carbon Trust, the UK government-backed agency charged with encouraging the shift to a low-carbon economy, and carried out by Cleantech Advisors, part of the Cleantech Group – finds that while European investment in clean energy has grown over the past four years, it still falls short of the buoyant US market.

Between 2003-2006, 300 European clean energy companies received a total of Euro1.96bn venture investment, in 444 rounds. That's around 60% by number and 40% by value of the US total.

Clean energy investment accounted for an average 10% of total European VC deals per quarter, on a par with biotech, IT and semiconductors. The UK lead the pack with 42% of all deals (211 funding rounds), reflecting its dominance of the wider European VC market. Germany (14%) came a distant second, with France (7%), Sweden (5%) and Finland (4%) following.

As in the US, companies developing or deploying renewable energy generation technologies took the bulk of investment, with a total Euro795m. Solar energy attracted Euro292m investment, with German companies taking the largest share thanks to generous government incentives boosting demand. Wind power took Euro165m, closely followed by hydrogen and fuel cell businesses with Euro149m.

Energy conservation and efficiency technologies took Euro899m in 203 rounds. This is a significantly larger share of net investment than in the US, suggesting an emerging area of specialisation for Europe.

But while North American venture investment has surged since late 2005, European levels have remained fairly static. That's partly due to the role of London's AIM (Alternative Investment Market) and the Frankfurt Stock Exchange in providing funding for growing tech businesses. 2005 saw 22 clean energy IPOs, with a further 15 in 2006.

The rush of IPOs and some questionable valuations has fuelled speculation that the clean energy sector is in the throes of an unsustainable financial bubble. The report concludes that there is indeed a bubble, but not necessarily a worrisome one: Rather than another dot com bubble bursting, we have seen a period of carbonated fizz generated around this sector which has gradually faded as the market has become more educated.

Staking Europe's place in the clean energy economy calls for a substantial increase in venture investment, however. Maintaining the current growth rate will require a further Euro2.5bn investment by 2010 - but achieving the growth rate seen in the US over the past three years will need Euro4.5bn.

The UK has seen the largest growth in Europe, although still less than the US. That may be thanks to the role of venture funds backed by public money, notably the Carbon Trust itself - over 45% of UK cleantech deals have been backed by public sector investors, according to an earlier study by venture specialists Library House. The European average is just 14.7%, leading to calls for more government support for young cleantech companies.

The role of the state in backing clean energy ventures is emphasised in the latest Energy White Paper published by the UK Department of Trade & Industry last month. The paper calls for further incentives for private sector investment in low carbon technologies, as well as direct government funding for some research – the DTI is currently preparing to launch its Energy Technologies Institute, a public/private joint venture dedicated to low carbon R&D, with projected funding of £600m over 10 years. Governments have a responsibility to create the right incentives and frameworks to enable a rapid transition to a low carbon economy, the paper concludes.

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For the latest on European and UK cleantech investment, see my new blog, Clean Ventures.

Sweden Targets 30% Cut in Greenhouse Gas Emissions by 2020

Scandinavian country sets strong targets exceeding EU goal

Sweden is targeting at least a 30% cut in greenhouse gas emissions by 2020, beating the European Union goal of a 20% reduction (see previous post), according to Environment Minister Andreas Carlgren.

Carlgren told the Swedish newspaper, Svenska Dagbladet, that since Sweden had pushed hard in the recent EU negotiations on the reduction target, that it would be unacceptable for the country to accept a lower goal.

Sweden has already cut greenhouse gas emissions by about 7% from 1990 levels in it's efforts to meet Kyoto Protocol targets.

The country's willingness to self-impose even more aggressive emissions reductions targets than those discussed by the EU contrasts with the positions of China (see previous post), India (see previous post) and the United States (see here) who remain opposed to mandatory reduction targets.

Sweden has previously pledged to try to eliminate all fossil fuel use by 2020 (see previous post), although the likelihood of accomplishing that goal is uncertain.

[A hat tip to Green Car Congress]

Vatican goes green with solar roofs

The Vatican's traditional colors of white and gold are starting to look green with a new solar energy project.

A rooftop garden of solar panels is set to be installed on the Vatican's Paul VI Audience Hall. The solar energy project will begin next year and, when completed, will create enough electricity to heat, cool and light the entire building year-round, the Catholic News Service reported.

"Solar energy will provide all the energy (the building) needs," said Pier Carlo Cuscianna, head of the Vatican's department of technical services.

And that is only the beginning. Cuscianna said that he had in mind other sites throughout Vatican City where solar panels could be installed, but that it was too early in the game to name names.

Although Vatican City State is not a signatory of the Kyoto Protocol, a binding international environmental pact to cut greenhouse gases, its inaugural solar project marks a major move in trying to reduce its own carbon footprint.

When the project is finished, more than 1,000 solar panels will cover the football field-sized roof. Whatever solar power the hall is not using will be funneled into the Vatican's energy grid and benefit other energy needs.

Intersolar 2007 set to break all records again (June 21-23, Freiburg, Germany)

As in previous years, the international trade fair Intersolar 2007 reflects the dynamically growing solar technology industry in Europe. After the tremendous growth of the last few years, this year has once again seen the leading trade fair achieve record growth. Compared with last year, the number of exhibitors is up from 454 to 600, while the exhibition space has been increased from 26,000 square metres to 34,000 square metres.
http://www.intersolar.de

EU to decide on renewable energy boost

The European Union is divided on mandatory means of reducing global warming, DPA reports.

European Commission President Jose Manuel Barroso called on the EU Tuesday to set a mandatory target for increasing renewable energy use.

Speaking ahead of the March 8-9 European Summit, he said the 27-member EU must commit to slashing greenhouse gas emissions and consent that 20 per cent of Europe's overall energy consumption in 2020 come from renewable energy sources.

France, Poland, Finland, Luxembourg and Bulgaria opposed the setting of obligatory targets, while others warned the 20 percent target was too ambitious.

Barroso is also to press EU leaders on agreeing to "unbundle" or break up their giant energy firms, by separating gas and electricity production and distribution activities.

However, most EU governments favor the simpler separation of energy production and delivery. One company could engage in both activities but keep them legally apart.

France said that any discussion on using low-carbon energies must also mention nuclear energy, a controversial and divisive issue in Europe. Barroso said the Commission did not want to get involved, but that countries must be free to choose whether to boycott or press ahead with nuclear energy.

German Chancellor Angela Merkel has said the summit agenda will be topped by measures to combat climate change. Germany currently holds the EU presidency.