Renewables investment reached a high record during the first half of 2021, of US$174 billion; particularly, investment in solar energy projects grew 9% when compared to last year’s same period; according to the latest report Renewable energy investment tracker from BloombergNEF.
Firstly, the investment figure for H1 2021 is the highest ever recorded in a first half of a year; and its 1,8% bigger than the investment from previous year. BNEF data showed that a decline in investment in new renewables projects was offset by public market financing, venture capital and private equity investments in renewable energy companies.
Secondly, the report also notes that renewable energy companies raised $28,2 billion on public markets during H1, 2021; which is up 509% when compared to last year’s same period. Among the largest share offerings were Longi Green Energy (US$2.4 billion) and US fuel cell company Plug Power (US$2 billion).
Thirdly, while financing of renewable energy projects declined globally, investment in solar projects increased 9%, as said above. This, on a year-on-year basis to a record of $78,9 million durinh 2021’s first half. According to the report, this was mainly due to major investments in the U.S. for around $11,7 billion; and also, China, which spent $7,7 billion.
Moreover, Funds in circulation, that accounts refinancing of projects; mergers and also acquisitions; as well as buyouts, totalled $68,3 billion during the first half of the year; up 18% for a year earlier.
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Renewables investment may increase more during H2, 2021
In addition, about this metrics, Logan Goldie-Scot, head of clean power at BNEF, said. “This record first half for clean energy fundraising underlines the strength of appetite for sustainable investment opportunities; aligned to a net zero future.”
Furthermore, the report forecasts that this trend will continue, and will grow even more during the second half of 2021. In fact, this record is still 7% below when compared to H2 2020. However, BNEF forecasts that H2 2021 will surpass the high record; as investment often accelerates in the second half of a year to meet end-of-year targets and deadlines.
However, Albert Cheung, head of analysis at BNEF, commented. “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.”
Finally the report also found that at least 455GW of new solar PV capacity will need to be installed each year; by the end of this decade for the world to reach net zero status by 2050.
