Source: Bloomberg
According to BloombergNEF’s 2H 2023 Renewable Energy Investment Tracker report, a total of US$239 billion was invested in large- and small-scale solar systems, making up two-thirds of total global renewable energy investment over the first half of the year.
China continued to be the largest investor in solar, as it accounted for roughly half of all large- and small-scale solar investments in 1H 2023. Reasons for the dominance included lower module prices, a robust rooftop PV market, and the commissioning of China’s energy megabases, which aim to develop large-scale wind and solar installations mainly in desert areas.
The US was the second-largest investor solar, spending US$25.5 billion in large and small-scale solar during 1H 2023. Although the investment from the US was far lower than that of China, this was already a 75% increase from H1 2022 as supply chain constraints eased and clarity grew around the Inflation Reduction Act (IRA).
Germany, Poland and the Netherlands also saw record-breaking investment, with demand driven by Russia’s invasion of Ukraine and the subsequent energy crisis in Europe. Saudi Arabia also saw impressive growth thanks to the NEOM PV plant for dedicated hydrogen production.
However, the record investment in H1 2023 was still below the amount required to keep global warming well below 2°C by 2050. According to BloombergNEF’s New Energy Outlook, the world needs to spend US$8.3 trillion on renewable energy deployment from 2023 to 2030.
Therefore, US$590 billion should be invested in asset finance and small-scale solar in a six-month period, meaning that the investment in H1 2023 still needs to increase by 76% to reach the required amount.
