Renewable Energy: Major Milestones Reached

Renewable Energy

For the first time, developing world investments in renewables (up 19 per cent in 2015) topped developed nations’ (down 8%); World record total of $286 billion invested in renewables last year, makes $2.3 trillion over 12 years. Coal and gas-fired electricity generation last year drew less than half the record investment made in solar, wind and other renewables capacity — one of several important firsts for green energy announced in a UN-backed report end of March.

Global Trends in Renewable Energy Investment 2016, the 10th edition of UNEP’s annual report, launched by the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance and Bloomberg New Energy Finance (BNEF), says the annual global investment in new renewables capacity, at $266 billion, was more than double the estimated $130 billion invested in coal and gas power stations in 2015.

All investments in renewables, including early-stage technology and R&D as well as spending on new capacity, totalled $286 billion in 2015, some 3% higher than the previous record in 2011. Since 2004, the world has invested $2.3 trillion in renewable energy (unadjusted for inflation).

Just as significantly, developing world investments in renewables topped those of developed nations for the first time in 2015.

Helped by further falls in generating costs per megawatt-hour, particularly in solar photovoltaics, renewables excluding large hydro made up 54% of added gigawatt capacity of all technologies last year. It marks the first time new installed renewables have topped the capacity added from all conventional technologies.

The 134 gigawatts (GW) of renewable power added worldwide in 2015 compares to 106GW in 2014 and 87GW in 2013.

Were it not for renewables excluding large hydro, annual global CO2 emissions would have been an estimated 1.5 gigatonnes higher in 2015.

As in previous years, the report shows the 2015 renewable energy market was dominated by solar photovoltaics and wind, which together added 118GW in generating capacity, far above the previous record of 94GW set in 2014. Wind added 62GW and photovoltaics 56GW. More modest amounts were provided by biomass and waste-to-power, geothermal, solar thermal and small hydro.

In 2015, more attention was drawn to battery storage. It is of significant importance as it is one way of providing fast-responding balancing to the grid, whether to deal with demand spikes or variable renewable power generation from wind and solar.

In 2015, for the first time, investments in renewable energy in developing and emerging economy nations ($156 billion, up 19% compared to 2014) surpassed those in developed countries ($130 billion, down 8% from 2014)

Last year, some 250MW of utility-scale electricity storage (excluding pumped hydro and lead-acid batteries) was installed worldwide, up from 160MW in 2014.

In 2015, for the first time, investments in renewable energy in developing and emerging economy nations ($156 billion, up 19% compared to 2014) surpassed those in developed countries ($130 billion, down 8% from 2014).

Much of these record-breaking developing world investments took place in China (up 17% to $102.9 billion, or 36% of the world total).

Other developing countries showing increased investment included India (up 22% to $10.2 billion), South Africa (up 329% to $4.5 billion), Mexico (up 105% to $4 billion) and Chile (up 151% to $3.4 billion).

Morocco, Turkey and Uruguay all joined the list of countries investing more than $1 billion. Overall developing country investments last year were 17-times higher than in 2004.

Among developed countries, investment in Europe was down 21%, from $62 billion in 2014 to $48.8 billion in 2015, the continent’s lowest figure for nine years despite record investments in offshore wind projects.

The United States was up 19% to $44.1 billion, and in Japan investment was much the same as the previous year at $36.2 billion.

“Despite the ambitious signals from COP 21 in Paris and the growing capacity of new installed renewable energy, there is still a long way to go,” said Prof. Dr Udo Steffens, President of the Frankfurt School of Finance & Management. “However, the commitments made by all nations at the Paris climate summit in December, echoing statements from last year’s G7 summit, require a very low- or no-carbon electricity system.”