Reports indicate life after stimulus for clean energy

By Bruce Gruenewald

Director, Energy and Environmental Operations

Reports continue to indicate the clean energy sector’s strength despite the recession and uncover signs pointing toward steep growth in the coming years. Perhaps there’s life after stimulus after all?

A recent report from Bloomberg New Energy Finance noted that worldwide financial investment in clean energy, including wind farms, solar parks, biofuel plants, and other projects, as well as public market, venture capital, and private equity financing for clean energy companies reached $27.3 billion in the first quarter of 2010. That level represents an increase of 31 percent from the first quarter of 2009 but is down 13.6 percent from the fourth quarter.

However, Bloomberg expects clean energy investments to set a record in 2010, possibly reaching $200 billion. And the U.S. Department of Energy’s Energy Information Administration predicts renewable energy will be the fastest-growing source of energy throughout the world over the next 28 years. According to highlights of an EIA report released last month, International Energy Outlook 2010, the anticipated growth will meet a projected 49 percent increase in world energy use.

The American Recovery and Reinvestment Act has so far been the main driver of the U.S. clean energy market. Critics have suggested there won’t be a return on that investment or that if the investment has to be made in the first place, it’s an artificial marketplace. The recent reports blow those theories out of the water.

I believe these signs most certainly suggest there’s life after stimulus funding. The stimulus primed the pump. And there’s no stopping it now.

Bruce Gruenewald is the Director, Energy and Environmental Operations for NSI. He runs the day-to-day operations of the sector and works with the vice president to help clients develop sustainable energy and environmental solutions for state and local governments. Prior to joining NSI, Mr. Gruenewald served as a program manager on several US EPA contracts. He provided technical leadership for the contracts, supervised multi-disciplinary consulting staffs, and managed the business and contractual relationships with the government. He also positioned his employers for new business opportunities in federal, state, and local markets, evaluated potential teaming partners, and wrote proposals and developed pricing and cost strategies in response to RFPs. Prior to working in the federal contracting field, Mr. Gruenewald worked for the US EPA for 8 years, the last two as the Lead Economist on the Superfund reauthorization task force where he advised legislative negotiators and political appointees on the economic, budgetary, and programmatic impacts of various legislative proposals to reauthorize the Superfund program. Mr. Gruenewald graduated with honors from Saint Louis University with a BA in Economics. He also holds an MPA from George Washington University and is an associate member of the American Bar Association’s Section on Environment, Energy, and Resources.