After two years of declines, global investments in renewable energy bounced back strongly last year according to UNEP’s 9th annual Global Trends in Renewable Energy Investment report.
Prepared by the Frankfurt School, the report states renewables investment registered a 17% increase to USD $270 Billion in 2014.
China led the way with a record $83.3 billion, up 39% from 2013. In second place was the USA with $38.3 billion and Japan was third with $35.7 billion.
Developing nations shone in terms of percentage growth, with $131.3 billion in investments – up 36% on 2013 and greatly closing the gap with developed countries.
Combined, wind, solar, biomass and waste-to-power, geothermal, small hydro and marine power generated an estimated 9.1% of world electricity generation in 2014, compared to 8.5% in 2013.
Solar power saw its second highest investment year ever, increasing 29% to $149.6 billion and 46GW of solar panels were installed – a record. Wind investment increased 11% to a record $99.5 billion and 49GW of wind capacity was added – also a record.
Last year’s 95GW of wind and solar PV power capacity installation compares to 74GW in 2013, 79GW in 2012 and 70GW in 2011.
Renewable energy technologies excluding large hydro constituted 48% of the net power capacity added globally last year, the third year in a row in which this figure has been above 40% and the first time non-hydro renewables have reached 100GW of installations.
While 2014 was a welcome change for renewable investment globally, the UNEP points out major challenges do remain – and one in particular that Australia has become very familiar with is policy uncertainty.
Australia was a country unable to share in the glory last year due to its Renewable Energy Target being in limbo. Investment in large-scale renewables in Australia in 2014 plummeted 88 per cent and the nation’s ranking as an attractive place to invest in renewable energy slid from four to ten.
The Global Trends in Renewable Energy Investment report (Key Findings – PDF) was commissioned by UNEP’s Division of Technology, Industry and Economic (DTIE) in cooperation with Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance and produced in collaboration with Bloomberg New Energy Finance.
