Advanced Energy Economy (AEE) has attempted to define and measure the so-called “advanced energy economy,” which it concludes comprised a $1.16 trillion global market in 2011.
The AEE’s definition of the advanced energy industry includes seven distinct market segments associated with energy demand (Transportation, Buildings and Industry) and energy supply (Fuel Production, Fuel Delivery, Electricity Generation, and Electricity Delivery and Management). However, the definition of advanced energy economy does not include any fossil fuel extraction industries.
The report “Economic Impacts of Advanced Energy” was commissioned by the Advanced Energy Economy Institute, AEE’s educational and charitable affiliate, and produced by Pike Research. It finds that advanced energy in the US generated $132 billion in revenue in 2011, and is projected to grow at 19 percent for 2012, with US revenue rising to $157 billion.
As the first attempt to document the advanced energy industry, this report likely understates the size and extent of advanced energy economic activity and the findings should be considered a conservative statement of advanced energy market size.
The report found:
- In 2011, global revenue from the seven advanced energy segments reached more than $1.16 trillion.
- The largest segment was Electricity Generation with $549.3 billion in 2011 revenue, accounting for 49 percent of the total, led by Hydropower ($257 billion), Solar ($113.2 billion) and Wind ($67.1 billion).
- The third largest segment was Buildings, with $118 billion in annual energy revenue for 2011.
- Advanced energy generated $132 billion in US revenue in 2011 and contributed an estimated $20.6 billion in combined federal, state and local tax revenue.
- The US share of the global advanced energy market is expected to rise from 12 percent to 15 percent from 2011 to 2012.
- Year over year, the US is expected to see a 19 percent increase in advanced energy revenue (from $132 billion in 2011 to $157 in 2012).