According to Morgan Stanley worldwide sales from clean energy sources like wind, solar and geothermal power and biofuels could grow to as much as $1 trillion a year by 2030. Revenues could reach $505 billion in 2020, a nearly nine-fold increase from 2005.
Population growth and soaring prices for fossil fuels are driving the market, along with dropping costs in clean energy and concern about energy security and climate change.
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The bank also began covering the clean energy industry. It rated thin film solar company First Solar Inc, solar company SunPower Corp, biofuel company VeraSun Energy Corp., and emissions reducers Fuel Tech Inc. as overweight-volatile:
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The bank was particularly bullish on solar power. Market penetration of solar in electricity generation could rise from insignificant levels in 2005 to 11.2 percent in 2030, and wind power from 0.9 percent to 9.6 percent by then.
Solar would take more market share as costs decline. Morgan Stanley projects the cost of solar power to fall from $8 per Gigawatt installed in 2005 to $1.60 per GW by 2030. The cost of wind power, which is now about $2 per GW. is forecast to remain about the same.
Penetration of biofuels like ethanol and biodiesel in transportation could increase from approximately 1 percent in 2005 to 21 percent in 2030, it said, assuming cars boost fuel efficiency.
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Late in 2006 the bank said it planned to invest $3 billion in carbon markets over the next five years.
by Timothy Gardner
Reuters www.Reuters.com
http://www.reuters.com/article/environmentNews/idUSN1844905920071018?pageNumber=2&sp=true
October 18, 2007
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Environmental Valuation & Cost Benefit News covers legal, academic, and regulatory developments pertaining to the valuation of environmental amenities and disamenities, such as clean air, trees, parks, congestion, and noise. We apprise the reader about ways in which costs and benefits are measured, and the results of empirical studies. We hope that this information will allow public and private organizations to comprehend the risks and benefits of various actions, help disputants to resolve conflicts equitably and efficiently, and improve the quality of public policies. We will only discuss issues related to the empirical quantification of private and social costs and benefits and damages, and summarize information from daily newspapers, academic journals, legal publications, court decisions, professional newsletters commissioned studies, and on-line services. This newsletter is dedicated to the principal that all policies place values upon life, liberty, and the pursuit of happiness. We believe that more information, explicit specification of assumptions, and rigorous analysis can help our society to better meet these ends. This site will increasingly serve, in conjunction with others, as a valuation database. We will include a wide range of studies, including non-environmental reports, because omission of a factor effectively values it at zero, and biases decisions. Heavy traffic has caused several site crashes. We are attempting to correct these problems. Apologies for any inconvenience.
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