More countries than ever before now have policies that support renewable energy production. This is obviously a good thing as we are seeing the impact of climate change (like the recent tornados in Japan). We are now a seeing a global effort to slow climate change via policy over the last couple years with Asian and South American countries enacting polices, previously it was primarily only European nations.
The economic diversity of countries enacting support policies for renewable energy has also greatly expanded. High-income economies accounted for 69 percent of all policy support by mid-2005, but by early 2013 this had declined to 30 percent. The other economic groups each increased their share by more than 10 percent.
â€œAs the renewable energy sector continues to mature, policymakers face a host of new challenges,â€ said Evan Musolino, trend author. â€œWhile the pace of countries adopting new renewable energy support policies has slowed somewhat in recent years, the sector has experienced a flurry of activity centered on revising existing policy mechanisms. Policy changes have been driven by a variety of factors, both positive and negative.â€
Rapidly changing market conditions for technologies such as solar photovoltaics, where module costs declined by 80 percent since 2008 and by 20 percent in 2012 alone, have dramatically reduced the level of support needed to make projects attractive to investors and feasible for project developers. Simultaneously, the global economic slowdown left many countries with continuously tight national budgets, which has threatened support for the renewable energy sector. The combination of factors has led to a number of cuts to existing incentive programs.