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Winners and losers emerge for renewable energy in 2012

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But heading into 2012, renewable energy is entering a new phase, with winners and losers emerging both within renewable energy sectors and as part of larger energy markets. Renewables are no longer just one energy source among many but in some markets are a direct competitor with fossil fuels.

Renewable energy, bolstered by long-term government support policies in many countries eager to promote shifts to clean energy, has weathered tough economic times and volatile financing markets since the worldwide economic recession hit in the fall of 2008.

Some renewables sectors appear poised for continued success, though the ongoing global financial crisis and widespread government budget cut that have followed, will cast a pall over the industry.

"The renewables industry is like the rest of the economy. It will definitely feel the effects of austerity," energy analyst Daniel Yergin, chairman of Cambridge Energy Research Associates, told Platts on December 2. "The economic crisis has put pressure on national budgets. One challenge will be the cost structure of renewables, the incentives.

Source: Platts