ARRA grows renewable energy markets, drives energy independence
ARRA investments are funding research projects to develop next generation renewable energy technologies
New York City, January 31, 2011 — The U.S. is making progress toward attaining its goal of doubling renewable generation capacity over the next two years, due in large part to support from the American Recovery and Reinvestment Act introduced in 2009.
ARRA investments are funding research projects to develop next generation renewable energy technologies, such as solar thin films and new wind turbine designs that will create a cost competitive alternative to electricity currently generated from coal or natural gas power plants while simultaneously creating long-term economic market growth.
ARRA Report Card: Two Years Later, the latest industry study from market research publisher SBI Energy provides a time-capsule analysis of the impact of ARRA investments. The report features framework to the new energy economy:
* 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 < 1 GW per year in 2008 to nearly 4 GW per year in 2012.
* ARRA investments are accelerating the rate of innovation in solar photovoltaics and according to the CEA, the new technology will drive down the costs of solar panels over the next five years; possibly by 50 percent.
* 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 GW 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.
* An April 2010 U.S. Geothermal Energy Association (GEA) survey indicated a 26 percent increase in new projects under development in 2009 and concludes that the stimulus funding played an important role in propelling geothermal growth amidst recessionary economic conditions.
Overall, the Energy Information Administration (EIA) estimates that U.S. renewable generation capacity will increase 32 percent more than without ARRA support — reaching 155 GW in 2015. Two years after the enactment of ARRA, indications are strong that the Recovery Act is aiding the U.S. in attaining its goal of doubling renewable generation capacity in the next two years.
ARRA Energy Report Card: Two Years Later examines the ARRA clean energy investments and their impact on the various clean energy markets within the power, transportation, and building sectors. The report presents the ARRA direct investments, segmented by sector and clean energy market, and provides details with regard to cross-sector energy-related ARRA investments and tax incentives.
A summary of the clean energy markets within each sector likely to be impacted by ARRA energy investments is presented, along with obligations to date, and potential impact and estimated market size to 2015.
ARRA direct investments made in the power, transportation, and buildings sectors are discussed in detail. The report includes specific program details, appropriations amounts, awardees, and intent. Further, the markets expected to benefit from ARRA provisions are highlighted by sector. Discussion of these markets includes products and technologies and estimated market size to 2015.
Identification and profiling of twenty private-sector companies that have received American Recovery and Reinvestment Act awards under clean energy programs are provided in the report. These companies represent some of the largest total ARRA clean energy awards made to private sector companies to date.
Recipient awards in the categories of renewable generation, grid modernization, carbon capture and sequestration, transportation, and energy efficiency are represented. Key profile information, brief descriptions of company activities, and discussion of company ARRA clean energy award activities are provided.