Investments around the world in clean energy and clean technology are expected to recover this year, after a 6.6 percent decline during the great recession of 2009.
They are projected to rise 25 percent, according to research conducted for the Pew Charitable Trusts. But where will the money go and which countries will benefit the most?
South Korea expects to spend $15.8 billion on smart grid development over seven years.
Last year, Spain invested five times more than the United States. China, Brazil and the United Kingdom each invested three times more. The potential for U.S. leadership in the emerging green energy field is being challenged.
Sure, the Obama Administration poured billions into clean tech last year, fueling the development of electric cars, advanced batteries, biofuels, solar panels and clean-coal plants. But this one-time burst of spending spurred by recovery act will dry up and a repeat performance isn’t likely.
So will the funding gap widen? The Obama Administration put a considerable amount of capital in smart grid development last year. Many utilities that hadn’t kicked off smart grid trials did so with government money. This should help create a fertile ground for innovation and the development of applications to let consumer better manage their electricity use.
But despite the surge, some industry researchers continue to look elsewhere for smart grid innovation. One such firm is Pike Research, which Wednesday claimed South Korea is building a foundation for strong exports in years to come.
The government is partnering with technology companies and industry to change the way electricity is generated, distributed and used in the country. This initiative is playing out in the Jeju Island demonstration project, weaving together grid automation, transmission upgrades, electric car recharging and renewable energy management systems.
The country is expected to spend $15.8 billion over seven years advancing the technology. The could turn the funding gap into a gulf.
