Is Green Energy Stalling?

The number of patents filed for renewable energy innovations has fallen by a whopping 42% over the last two years, new research shows. This could be a sign that investment in the renewable sector is stalling – which could hold grave consequences for the future of green energy.

Renewable power such as that garnered from solar panels, wind farms and wave turbines has long been touted as the ideal replacement for fossil fuels. And with falling costs accompanying technological advances (especially in the field of solar energy), it had looked likely that green energy could be an inviting financial prospect as well as a sensible environmental one.

However, the new report, conducted by law firm EMW, has put a dampener on the momentum of renewables.

By the Numbers

In 2012, there were a total of 35,590 patents filed in the fields of solar research, biofuels, waste-energy and wind farms. Among these were such innovations as the Venturi Orifice steam trap, which aimed to curb emissions by capturing escaping steam, and then using this very same vapour to harvest energy, thus cutting energy costs.

However, last year that figure had fallen to 20,655 patents related to the green energy sector – that’s a fall of 42%. Such cuts are indicative that renewables are clearly not enjoying the financial backing they once were… which could spell trouble for their future.

Why the Decrease?

The very same falling prices which have made green energy so attractive to the consumer and boosted its popularity may also be the reason for its current slump. Chinese mass production of solar panels has effectively killed off foreign competition in the solar industry. When taking into account that 65% of the patents filed last year were related to solar panels, this is indeed a worrying position.

Meanwhile, governments have cut back on subsidising green energy, too. In Germany, the tripling of levies on renewables has led to the highest energy prices across Europe. In a bid to curb the industry’s growth and rein in spiralling prices, Chancellor Angela Merkel has cut subsidies to the industry.

Similarly, in Britain, the subsidy for green energy is being reconfigured, with a new cap placed at £200 million. In fact, Prime Minister David Cameron signalled his intention to cut subsidies to the renewable sector as far back as 2013, calling into question the “sanity” of on-shore windfarms. Such words enraged environmentalists, who saw Cameron as reneging on his promise of making the incumbent Tory leadership “the greenest government ever”.

Clearly, green energy has suffered a setback in its bid to replace fossil fuels as the power source of the future. Whether or not low prices and decreased subsidies will hamstring it permanently remains to be seen; only time will tell whether the sun rises again on solar power and its counterparts.