Source: pnews.theedgemarkets.com; news.bloomberglaw.com
Credit: news.bloomberglaw.com
Global investments in renewables rose to a first half record of US$226 billion, as nations lift spending on cleaner fuel sources in an effort to boost energy security.
Investment was 11% higher than the same period in 2021, even as the sector handles challenges like the rising costs of solar panels and wind turbines, driven by gains in raw materials including polysilicon and steel, BloombergNEF said Tuesday in a new report.
“Despite the headwinds presented by ongoing cost inflation and supply chain challenges, demand for clean energy sources has never been higher,” said Albert Cheung, BNEF’s head of analysis.
“Policy makers are increasingly recognizing that renewable energy is the key to unlocking energy security goals and reducing dependence on volatile energy commodities.”
Even as turmoil in global energy markets prompted by the war in Ukraine pushes nations to fire up idled coal plants to help replace Russian gas, or to step up purchases of LNG, many regions are also accelerating efforts to reduce their reliance on fossil fuel imports by adding more clean power generation at home.
Solar project financing, including utility-scale developments, jumped about a third in the first six months to a record US$120 billion, and investments typically accelerate through the second half of the year, BNEF said. Investment in wind power projects was 16% higher at US$84 billion, with spending on offshore farms jumping 52%.
China continues to be the largest market and saw investment of US$98 billion, more than double the value in the first half a year ago, as the government presses ahead with the world’s largest rollout of wind and solar capacity. The US secured US$12 billion over the same period, and Japan won US$5 billion of investments, the report said.
