July 12 (Renewables Now) - Global investment in new renewable-based power capacity declined 3% in 2016 to USD 297 billion (EUR 260bn), but still accounted for the largest part of electricity spending, according to the International Energy Agency (IEA).
Renewables investment is also 3% lower compared to five years ago, but capacity additions are 50% higher and expected output from this capacity about 35% higher as a result of falling cost and technology improvements in solar photovoltaic (PV) and wind, IEA says in its annual World Energy Investment report, released on Tuesday.
Total electricity investment was almost flat at USD 718 billion in 2016 as growing network spending was offset by a drop in power generation spending. The electricity sector nevertheless for the first time surpassed the fossil fuel supply sector as the leading recipient of energy investment.
A continued drop in upstream oil and gas spending led to a 12% fall in total global energy investment to just over USD 1.7 trillion last year, compared to IEA's revised 2015 estimate. According to the report, global upstream oil and gas investment will stabilise in 2017 after two years of decline.
(USD 1 = EUR 0.875)