Global Energy Industry Stalls as Renewables Improve

EIC Monitor, a quarterly report from the Energy Industries Council (EIC) trade association, reports that recovery in the global energy industry stalled in the final quarter of 2009, with newly announced projects across the global energy supply chain for Q4 (October – December 2009) down across all sectors.

However, there have been some modest improvements in total project value in the renewables sector, EIC says along with upstream and midstream oil and gas sectors.

Meanwhile the power and downstream sectors have lost ground. 

Renewable energy projects represent the largest segment of new projects by value in the industry this quarter, up by 30% this quarter. The EIC report adds that new projects are emerging globally and there are signs of major investment beginning.

There have been 96 new projects in the renewables sector totalling US $119 billion, with a total capacity of 23 GW in Q4 2009. This compares with the 109 new projects with a combined 29 GWe and worth $92 billion seen in Q3 2009, and a total capacity of 10GWe recorded in Q4 2008 for 50 new projects worth $26 billion.

This compares favourably with the power sector, where the total value of new projects is down by over 40% on the previous quarter’s results, with the number of projects down by 26%.

“While overall this represents a slightly disappointing ending to the year given that the previous quarter showed more positive signs of recovery, the outlook is encouraging for the energy supply chain given that the global economy is poised for recovery in 2010”, observed Mike Major, CEO of the EIC.

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