October 2 (Renewables Now) - Investments in renewable energy capacity globally will reach USD 228.3 billion (EUR 197bn) this year, up by just 0.7% on 2017 as China’s decision to limit solar capacity additions has hit year-on-year growth, Frost & Sullivan says.
According to the company’s Global Renewable Energy Outlook, 2018, the world will install 154.6 GW of renewables in 2018, including 90 GW of solar photovoltaic (PV) parks and 53 GW of wind. Biomass, geothermal, and small hydropower are also growing, but their expansion is constrained by resource availability and the higher risks and upfront costs for such technologies.
Asia will bring over half of 2018 global investment, or USD 114.96 billion. According to Frost & Sullivan, 96% of that will be investments in solar, wind and biomass. Asia will account for 58% of the global new installed capacity in 2018.
Investment in North America will be stable at USD 33.17 billion, while Latin America’s renewables will witness a 20.1% jump in capacity and USD 17.7 billion in investment.
“Worldwide, we see that as the number of countries cutting subsidies increases, the market is compelled to consider purely commercial alternatives to feed-in tariffs, such as competitive auctions and private-sector power purchase agreements,” said Maria Benintende, Energy & Environment Senior Industry Analyst.
(USD 1 = EUR 0.86)