Rising fuel costs, global warming spur investment

John Wilen, Associated Press, Wednesday, February 6, 2008

High oil prices and growing concerns about the environment may drive more than $7 trillion of new investment in clean energy technologies by 2030, an energy research group says. Public pressure and private investment dollars are combining to bring clean energy technologies - defined as energy sources that are low in carbon emissions - from the fringes of the energy industry to its center, said Cambridge Energy Research Associates, or CERA, in a new report.

"We are seeing a major shift in public opinion," said Daniel Yergin, CERA's chairman. "This is providing a vital impetus that is moving clean technology across the great divide of cost, proven results, scale and maturity that has separated it from markets served by mainstream technologies."

Among renewable sources, wind power is poised to make the greatest gains, followed by solar power and biofuels, CERA said. But nuclear and hydroelectric generation will attract almost half of the $7 trillion, CERA said.

In the United States, renewable energy sources currently account for about 6.5 percent of total energy consumed, according to the Energy Department. Nuclear power itself makes up only an additional 8 percent of overall consumption, which is dominated by fossil fuels such as petroleum, coal and natural gas.

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