Renewable Energy Annual 2002
(Highlights)

The year 2002 was a year of moderate overall growth in renewable energy-related industries and markets. Total consumption of renewable energy rebounded from the precipitous drop between 2000 and 2001 caused by record low water levels in the West for hydropower. However, geothermal and non-electric biomass energy consumption continued to decline. The photovoltaic (PV) manufacturing industry maintained a healthy growth rate, with domestic sales increases outpacing exports. Finally, the number of geothermal heat pumps manufactured rose in 2002, although total capacity (tonnage) declined.

Renewable Energy Consumption

Consumption of renewable energy rose 11 percent between 2001 and 2002 to 5.9 quadrillion Btu (Table H1). A substantial rise in water availability for hydropower (2.7 quadrillion Btu) provided most of the increase. Biomass energy consumption increased very modestly to slightly over 2.7 quadrillion Btu in 2002, due to increased use of biomass for electricity and ethanol as an oxygenate in gasoline. For the third year in a row, biomass was the largest renewable fuel consumed.

Wind energy consumption, though very small at 0.106 quadrillion Btu, grew 56 percent in 2002, largely due to new capacity that came on line at the end of 2001 in response to the expiration of the wind Production Tax Credit. Geothermal and solar energy consumption declined from 2001 to 2002 to 0.304 and 0.064 quadrillion Btu, respectively.

Despite the 11 percent increase, renewable energy’s share of total U.S. energy consumption was just 6 percent in 2002 (Figure H1), compared with nearly 7 percent in 1998. Growth in renewable energy continues to be challenged by little or no development of new hydroelectric sites, a slow but lengthy decline in the use of biomass for non-electric purposes, and the high capital costs of most renewable energy production facilities, compared with fossil-fueled alternatives.

Solar Manufacturing Activity

Photovoltaic (PV) cell and module shipments by manufacturers rose 15 percent in 2002 to 112.1 peak megawatts in 2002. Shipments have grown every year since 1993. Domestic shipments grew faster than exports in 2002, in contrast to growth during the 1998-2000 period, which was fueled primarily by exports. Shipments of cells rose rapidly while module shipments declined in 2002. Sales to module manufacturers jumped 69 percent to 23.8 peak megawatts, the highest growth in shipments to any recipient group. Electricity generation (both grid-interactive and remote applications) continued as the predominant end use sector for PV cells and modules. Electric generation accounted for half of all shipments, with grid-interactive markets outpacing markets for remote uses.

Exports of PV cells and modules rose 9 percent to 66.8 peak megawatts in 2002. Exports have grown every year since 1985, except 2001. Germany maintained its position as the predominant importer of U.S. PV cells and modules, importing 50 percent of shipments. Japan continued the downward trend seen since 1999, dropping from 4.2 peak megawatts in 2001 to 3.2 peak megawatts in 2002. Japan imported nearly 15 peak megawatts from the U.S in 1999. In contrast, exports to Hong Kong rose 129 percent in 2002, becoming the second-largest U.S. export market with a 16 percent share.

The average unit price of PV cells decreased in 2002 by 14 percent to $2.12 per peak megawatt. Average module prices, however, increased 9 percent to $3.74 in 2002. The total value of cell and module shipments increased from $305 million in 2001 to $342 million in 2002.

Solar thermal collector manufacturing rose modestly in 2002, consistent with the general pattern seen since 1992 (except for a sharp rise between 2000 and 2001). Total shipments of solar thermal collectors rose 4 percent to 11.7 million square feet. Solar thermal collectors continue to be used mainly for swimming pools and hot water heating. Not surprisingly, most shipments were to the residential sector. Prices of solar thermal collectors were stable at $2.85 per square foot in 2002, compared with $2.90 in 2001.

Geothermal Heat Pump Activity

Shipments of geothermal heat pumps rose 4 percent between 2000 and 2002 to 37,139 units. (EIA did not survey geothermal heat pump manufacturers in 2001.) Heat pump tonnage, however, declined substantially from 164,191 in 2000 to 125,297 in 2002, due to a large drop in sales to industrial customers.

Green Pricing and Net Metering

Survey results on green pricing showed 211 electric industry participants reporting customers in green pricing programs during 2002, with just over 710,000 customers. Also, 98 electric industry participants reported being involved in net metering programs with 5,001 customers.

Contact:
Louise Guey-Lee
louise.guey-lee@eia.doe.gov
Phone: (202) 287-1731