Investment of $ 2600 billion in renewable energy in ten years timeIlumen
Global investments in renewable energy will finish at the end of this year at $ 2600 billion. Solar energy is by far the largest sector, according to figures from BloombergNEF and UN environmental organization UNEP.
The Global Trends in Renewable Energy Investment 2019 report shows that renewable energy investments have almost quadrupled in the past ten years: from 414 gigawatts at the end of 2009 to an expected 1650 gigawatts at the end of 2019.
With 1300 billion dollars in investments, solar energy accounts for around half of the total of 2600 billion investments over the entire decade. Solar power capacity grew from 25 gigawatts in early 2010 to 638 gigawatts this year – enough to power one hundred million average American families.
Even if fossil sources are included, solar energy appears to be the fastest growing sector. According to the report, 2366 gigawatts of power capacity were installed this decade, of which 638 were solar energy, 529 gigawatt coal, 487 gigawatt wind energy and 438 gigawatt gas plants.
Renewable energy can increasingly compete with other energy sources in terms of cost. Solar energy has been a whopping 81 percent cheaper since 2009, wind energy 46 percent.
“Investing in renewable energy is investing in a sustainable and profitable future,” says Inger Andersen, director of the UN environmental program UNEP. “But we cannot sit back: the total emissions from the electricity sector have grown by 10 percent this decade. It is clear that we need to speed up the pace of transition if we want to achieve the international goals regarding climate and development. ”
In 2018, renewable energy investments again reached $ 272.9 billion. Although that is a decrease of 12 percent compared to the year before, 2018 was the ninth consecutive year with investments of more than $ 200 billion and the fifth consecutive year with more than $ 250 billion. The figure is also good for around three times the global investment in coal and gas plants.
Moreover, the amount was achieved while the costs of wind and solar energy are steadily falling. As a result, 167 gigawatts of renewable capacity were built in 2018, more than the 160 gigawatts in 2017.
“The sharp fall in electricity and wind energy production costs in recent years has completely changed the decision making process for policy makers,” said Jon Moore, CEO of Bloomberg New Energy Finance. “The technologies have always been environmentally friendly and quick to install. But now they are often the cheapest solution to generate energy in many countries around the world. ”
The report also notes further growth in terms of indirect investment in the sector. For example, 10 percent more was invested in research and more money went to venture capital and specialized companies.
“It is an important finding that renewable energy is becoming the first choice in many countries,” said Nils Stieglitz, president of the Frankfurt School of Finance and Management. “But we now have to look beyond just scaling up clean energy sources. Dividing from coal is just a theme in a broader field of sustainable financing. Investors are increasingly concerned about the consequences of their decisions in a sustainable and climate-friendly future ”
China is by far the largest clean energy investor over the past decade, with more than $ 758 billion in investments between 2010 and the first half of this year. The US and Japan follow with 356 and 202 billion. Europe as a whole invested 698 billion dollars in the same period. Germany was a clear leader with 179 billion, followed by Great Britain with 122 billion.