Alternative Outlook

Renewable energy is surpassing fossil fuels for the first time in new power-plant investments, shaking off setbacks from the financial crisis and an impasse at the United Nations global warming talks.

Electricity from the wind, sun, waves and biomass attracted $187 billion last year compared with $157 billion for natural gas, oil and coal, according to calculations by Bloomberg New Energy Finance using the most recent data. Accelerating installations of solar and wind power led to lower equipment prices, making clean energy more competitive with coal.

“The progress of renewables has been nothing short of remarkable,” United Nations Environment Program Executive Secretary Achim Steiner said in an interview. “You have record investment in the midst of an economic and financial crisis.”

The findings indicate the world is shifting toward consuming more renewable energy even without a global agreement on limiting greenhouse gases. Delegates from more than 190 nations converge in Durban, South Africa, on Nov. 28 to discuss new measures for limiting emissions damaging the climate.

The renewables boom, spurred by about $66 billion of subsidies last year, intensified competition between wind- turbine and solar-panel manufacturers, gutting margins from the biggest producers led byVestas Wind Systems A/S and First Solar Inc. (FSLR) The 95-member WilderHill New Energy Index (NEX) of renewable- energy stocks has tumbled 40 percent this year, steeper than the 14 percent drop in the MSCI World Index.

Source : Bloomberg