Renewables spending in H1 reaches new heights of USD 174bn - BNEF
Source: Twitter, @Vestas
The world has spent a record USD 174 billion (EUR 146.5bn) on renewable energy projects and companies during the first six months of 2021, according to a new report by BloombergNEF (BNEF).
The research company’s latest Renewable Energy Investment Tracker shows that this total investment, up by 1.8% on the year, was driven by record public market financing, at USD 28.2 billion, and record levels of venture capital (VC) and private equity commitments at USD 5.7 billion. Still, the overall investment is 7% down compared to the figure registered in the second half of 2020.
BNEF notes that in January-June 2021 a decline in investment in new renewables was compensated for by a surge in equity offerings of sector players. The sum raised by renewable energy and related companies on public markets represents a 509% surge from last year, with China Three Gorges Renewables alone securing USD 3.5 billion.
When it comes to investments in wind projects, the figure surpassed USD 58 billion to match the levels recorded in 2018 and 2019, but still end up below the USD 85 billion registered in the same period of 2020. China alone saw USD 21 billion worth of spending on wind in the first half of 2021.
As per solar, investments in such projects reached a record USD 78.9 billion, with China attracting USD 4.9 billion in the second quarter and USD 2.8 billion in the first quarter. The US, on the other hand, saw USD 6.4 billion worth of spending on large-scale solar projects in April-June after USD 5.3 billion in January-March 2021.
BNEF pointed out that the so-called “funds in circulation”, including renewables refinancing, mergers, acquisitions and buyouts, rose by nearly 18% on the year to USD 68.3 billion.
“Renewable energy investment has withstood the effects of the global pandemic, in contrast to other sectors of the energy economy where we have seen unprecedented volatility. However, a 1.8% year-on-year increase is nothing to write home about. An immediate acceleration in funding is needed if we are to get on track for global net zero,” commented Albert Cheung, head of analysis at BloombergNEF.