Global investment in renewable energy totaled US$226 billion in the first half of 2022, setting a new record for the first six months of a year, according to the Renewable Energy Investment Tracker 2H 2022 - a report published by research firm BNEF (BloombergNEF).
According to the survey, the increase in investment reflects an acceleration in demand for clean energy supplies to face the current global energy and climate crises.
Investment in new large- and small-scale solar projects surged to a record $120 billion, up 33% from the first half of 2021. Financing for wind projects increased 16% from the first half of 2021 to $84 billion.
BloombergNEF highlights in the report that both sectors have been challenged by rising input costs such as steel and polysilicon, as well as supply chain disruptions and rising financing costs.
However, the research firm considers that the figures presented indicate that investor appetite is stronger than ever, in part due to the very high energy prices currently observed in many markets around the world.
More records
The Renewable Energy Investment Tracker summarizes BloombergNEF's tracking of global renewable energy investment through the first half of 2022 and covers project investments and corporate fundraising.
In addition to seeing investments in expanding projects, the first half also saw an all-time high in venture capital and private equity investments in renewables and energy storage, with US$9,6 billion raised – a 63% increase compared to the previous year.
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Figure 1 – Global investment in renewable energy. Credit: BNEF
China stands out
China has seen remarkable growth in investment in wind and solar project financing. The country’s large-scale solar investment totaled $41 billion in the first half of 2022, up 173% year-on-year. It also invested $58 billion in new wind projects, up 107% year-on-year.
“Green infrastructure is the most important investment area that China is relying on to boost its weak economy in the second half of 2022. The investment growth trend follows China’s strategy of building new renewable generation capacity so that it can replace its existing coal fleet. China is on track to reach its solar and wind capacity target of 1.200 gigawatts by 2030,” said Nannan Kou, head of China analysis at BNEF.
Offshore wind energy was another sector that saw a sharp increase, with investment up 52% year-on-year to $32 billion.
“Investment in 2022 will flow into projects that will come online in the coming years, as the installed base of offshore wind is expected to grow tenfold from 53 GW in 2021 to 504 GW in 2035. Offshore wind projects enable companies and governments to move towards their decarbonisation goals at scale. The UK, France and Germany are just some of the countries that have increased their offshore wind targets in the first half of 2022, signalling further support for investment in the technology,” said Chelsea Jean-Michel, offshore wind analyst at BNEF.
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